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RESERVE 2 > Ethics > Flashcards

Ethics Flashcards

1
Q

How do the RICS ensure that standards and quality are maintained in terms of both the conduct and advice provided by chartered surveyors?

A

RICS has the Rules of Conduct for members and firms

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2
Q

Give your opinion on why the RICS has rules and codes of conduct?

A
  1. Consistency of service and approach, maintaining professional standards, governance and regulation
  2. Rules help members to act in a professional capacity
  3. Rules maintain and promote the usefulness of the profession for public advantage
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3
Q

Who administers the rules and codes of conduct?

A

RICS Regulation is the regulatory arm of the RICS and is responsible for ensuring that RICS members and firms behave in a professional manner and adhere to rules and regulations

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4
Q

What are the Rules of Conduct for members?

A
  1. Be honest and act with integrity
  2. Maintain their professional competence
  3. Provide good-quality and diligent service
  4. Treat others with respect and encourage diversity and inclusion
  5. Must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
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5
Q

When did the New Rules of Conduct become effective?

A

Effective from 2 February 2022

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6
Q

What are the key changes from the previous Rules of Conduct?

A
  1. A simpler structure. Easier for RICS members and firms to understand our rules, providing more confidence for clients and the public.
  2. Clear examples. To help support members’ professional judgement, each Rule is illustrated with examples of how members and firms can behave to comply with the Rule. There are also 12 case studies showing real-life application of the Rules.
  3. Focusing on respect, diversity and inclusion. Whether it’s encouraging diversity and inclusion, or tackling modern slavery, respect and courtesy underpin all our professional ethics.
  4. Understanding evolving technology. The Rules highlight the importance of understanding the evolving use of data and technology, and the associated benefits and risks.
  5. Tackling global challenges. The Rules show that ethical practice by RICS members and firms has an important role when it comes to global challenges, including creating sustainable development and tackling climate change.
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7
Q

What are the professional obligations for RICS members?

A
  1. Members must comply with the CPD requirements set by RICS.
  2. Members must cooperate with RICS.
  3. Members must promptly provide all information reasonably requested by the Standards and
    Regulation Board, or those exercising delegated authority on its behalf.
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8
Q

What are the professional obligations for RICS firms?

A
  1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
  2. 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.
  3. 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.
  4. Firms must cooperate with RICS.
  5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
  6. 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.
  7. Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
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9
Q

You attend a work social event and witness two junior colleagues acting in a way that could likely bring the firm into disrepute. What should you do?

A

Speak to my colleagues immediately and address their actions formally in work

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10
Q

What are the different types of document that the RICS produce and what is their status?

A
  1. International Standards - Mandatory
  2. RICS Professional Statement - Mandatory
  3. RICS Code of Practice - Mandatory or recommended good practice
  4. RICS Guidance Note - Recommended best practice
  5. RICS Information Paper - Information and/or recommended best practice
  6. RICS Insight - Information only
  7. RICS Economic / Market Report - Information only
  8. RICS Consumer Guide - Information only
  9. Research - Information only
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11
Q

Why do we have guidance notes, and do you have to follow them?

A
  1. Outline best practice within the profession
  2. They should be followed and members should remain up to date to ensure they are competent
  3. Provides protection against professional negligence claim
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12
Q

What is the RICS Black Book Guidance Notes?

A

The “Black Book” is a suite of guidance notes that define good technical standards for quantity surveying and construction professionals

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13
Q

Can you explain how you act with integrity?

A
  1. Being trustworthy in all that you do
  2. Respecting confidential information
  3. Not offering or accepting gifts, hospitality or services which might suggest improper obligation
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14
Q

Can you explain how you take responsibility?

A
  1. Be accountable for all your actions
  2. If you think something is not right, be prepared to challenge it and raise the matter as appropriately with a colleague
  3. If someone makes a complaint against you, operate the appropriate CHP
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15
Q

Can you explain how you would treat others with respect?

A
  1. Be polite and respectful
  2. Never discriminate
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16
Q

Can you explain how you provide a high standard of service?

A
  1. Act within your scope of competence
  2. Communicate with clients in a way that allows them to make informed decisions
  3. Be clear about about what service your client wants and the service you are providing
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17
Q

Can you explain how you would maintain professional competence

A
  1. Only undertake work that they have the knowledge, skills and resources to
    carry out competently
  2. Undertake CPD
  3. Stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards.
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18
Q

What should employers do to create an ethical environment?

A
  1. Establish confidential setup for “whistle blowing” independent of the normal chain of command
  2. Include ethical evaluations into formal performance appraisals
  3. Include ethical standards into employee hiring, employment contracts and training
  4. Become chartered with the RICS
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19
Q

What is the difference between ethics and integrity?

A

Ethics are a set of standardised rules for conducting yourself normally

Integrity is more of a personal code of conduct (doing the right thing)

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20
Q

What tools are available to help members make ethical decisions?

A

RICS Ethics Decision Tree

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21
Q

After receiving inside information about a competitors quote, you consider altering the terms to win the job. You realise you may be promising more than you can deliver. What should you do?

A
  1. Potential Conflict of Interest
  2. Not working to the rules of conduct (providing a high standard of service)

Stand by original quotation as that is what you feel is required to carry out the works

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22
Q

What procedures must you follow if you are starting up a new firm?

A
  1. Contact the RICS for guidance
  2. Apply the RICS ensuring the Rules for Registration is being followed
  3. Appoint a contact officer for all RICS communications
  4. Prepare a complaints handling procedure
  5. Obtain PI and run off insurance cover
  6. Abide by the Rules of Conduct for firms
  7. Confirm whether will be handling client money
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23
Q

What determines when a firm has to register with RICS?

A

If the number of Principles is over 50%

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24
Q

What sort of information has to be submitted within the RICS Annual Return?

A
  1. Type of business and staffing
  2. Nature of clients
  3. Complaints handling procedure details and log
  4. PI Insurance Certificate
  5. Whether the firm holds client money
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25
Q

What insurances would need to be put in place if you were going to set up your own business?

A
  1. Professional Indemnity
  2. Third Party Liability Insurance
  3. Employers Liability Insurance
  4. Run off (6 years or 12 years for a deed)
  5. Building Insurance (If have own premise)
26
Q

What are the CPD requirements for APC and MRICS Surveyors?

A

APC
- 48 hours annually (24 formal + 24 informal)

MRICS
- 20 hours annually (10 formal + 10 informal)

The year runs every calendar year and should be recorded on the RICS website by 31st January

RICS Professionalism Module - every 3 years

27
Q

How do you define between formal and informal CPD?

A

RICS CPD Decision Tree

Formal - Structured learning with clear learning objectives and outcomes

Informal - Self-managed learning that is relevant to professional role

28
Q

How do you go about selecting what CPD you should be doing next year?

A
  1. Consider the weaker / limited areas of my knowledge
  2. Consider Hot Topics
  3. Consider future project requirements
29
Q

Can you accept gifts from the client or contractor?

A

Gifts and hospitality can be accepted, the key is to make an assessment on the gift proportionality and timing

30
Q

What things would you consider when considering if a gift is appropriate and in accordance with the Rules of Conduct?

A

Consult ethics decision tree
1. Value
2. Timing
3. Will it effect your ability to act impartially

31
Q

What does the RICS ask you to consider regarding gifts?

A
  1. Sufficient facts on the issue
  2. Is it legal
  3. In line with the RICS ethical standards
32
Q

Can you explain what a conflict of interest is?

A

Anything that impedes an individual or firms ability to act impartially and in the best interest of a client

33
Q

Can you name 3 types of conflicts which are outlined in the 2017 conflict avoidance practice note?

A

Party Conflict - Acting for both a developer and contractor

Own Interest Conflict - Act in the interest of a client in a professional assignment conflicts with the interest of that same member of firm

Confidential Information Conflict - Conflict between the duty of an RICS to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential

34
Q

Give some examples of conflict of interest?

A
  1. Acting for both developer and contractor
  2. A friend working for another member of the project team
35
Q

What action should you take in the event of a conflict of interest?

A

As soon as you are aware, disclose in writing to the client the possible nature of the conflict. Advise the client that neither member or firm can continue unless;
- Both conflicting parties feel they can act without 100% impartiality
- Client finds it acceptable and confirms this in writing

36
Q

Does the RICS produce any information on conflicts of interest?

A

Conflict of interests RICS Professional Statement - effective from 1st January 2018

37
Q

What is a bribe?

A

An inducement or reward offered, promised or provided in order to gain any commercial, contractual, regulatory or personal advantage

38
Q

What is the Bribery Act 2010?

A

Act of parliament of the UK that covers criminal law relating to bribery

39
Q

What is your position for compliance with the bribery act?

A

My company has an anti-bribery and corruption policy which applies to me as an employee

40
Q

What are the potential consequences for not adhering to the Bribery Act?

A

Imprisonment or fine

41
Q

What is money laundering?

A

Money which is presented as legitimate but is instead from an illegitimate source

42
Q

What do you do if you suspect money laundering?

A
  1. Raise it with my director
  2. Submit a report to National Crime Agency
43
Q

What regulations are associated with money laundering?

A

UK Money Laundering Regulations 2007

44
Q

What is the maximum amount in cash you can accept as payment?

A

10,000 euros

45
Q

What are some of the red flag indicators relating to money laundering?

A
  1. Evasive/secretive client
  2. Client with criminal associations
  3. Someone who wants to make large cash payments
46
Q

What is corruption?

A

The misuse of public office or power for private gain

47
Q

What is price fixing monopoly cartel?

A

A group of formally independent producers of goods or services whose goal it is to increase their collective profits by pushing the price of a product as high as possible

48
Q

What is terrorist financing?

A

The solicitation, collection or provision of funds with the intention that they may be used to support terrorist acts or organistations

49
Q

What is modern day slavery?

A

People being forced to work against their will or illegally

50
Q

How would you report modern day slavery?

A

Section 52 of the modern-day slavery act says you have a duty to notify the home office

51
Q

What is meant by PI Insurance?

A

PI is insurance to cover the damages or losses suffered by a client due to negligent actions, omission or errors of a professional

52
Q

Reasons PII is needed for RICS firms?

A
  1. Firms are protected from financial loss it cannot meet as a result of negligence claim
  2. To protect firm against consequences of its inability
  3. Firms clients do not suffer financial loss which the firm cannot meet the limit of indemnity
53
Q

What if the loss exceeds the cover provided by PI insurance?

A

The firm is liable for the difference - in assets etc (unless the liability is capped)

54
Q

What are the minimum levels of indemnity and how is it calculated?

A

Calculated on the firms turnover;

  1. £100k or less - £250k minimum PI
  2. £100k to £200k - £500k minimum PI
  3. £200k or above - £1m minimum PI
55
Q

What measures should be taken to try and avoid PI claims?

A
  1. Keep full and detailed records of meetings and conversations
  2. Record recommendations and advice given
  3. Use RICS guidelines
56
Q

If you made a mistake within your cost plan, what would your insurance company expect?

A
  1. To be notified
  2. Assess the level of mistake
  3. Comply with conditions within insurance policy
  4. Advise the client ASAP
57
Q

How long should run off cover be in place?

A

Depends on the type of contract
- 6 years if the contract is executed underhand
- 12 years if contract is executed as a deed

58
Q

What are the subjects RICS investigate against a member or firm?

A
  1. Failure to use complaints handling procedure
  2. Incompetence
  3. Conflict of interest
  4. Misuse of client money
  5. Failure to answer correspondence
  6. Breaking rules of conduct
  7. Allegation or conviction of a criminal offence
59
Q

How can a disciplinary proceeding be triggered?

A
  1. Someone complaining to the RICS
  2. An allegation by a client or third party
  3. Information received or established by the RICS
60
Q

What three actions can be imposed after the end of the investigation stage?

A
  1. Fixed penalty
  2. Consent order
  3. Disciplinary panel
61
Q

In the case of a breach of rule of conduct, what is the procedure?

A
  1. Not every shortcoming will necessarily give rise to proceedings
  2. Formal investigation by Head of Regulation of the RICS
  3. RICS can request information and/or visit and inspect to investigate compliance
  4. Members must fully cooperate with all enquires
62
Q

On what grounds can a member be expelled from the RICS?

A
  1. Failure to pay membership fees
  2. Failure to renew PII
  3. Failure to undertake CPD
  4. Fraud
  5. Conviction of a serious criminal offence

RESERVE 2 (26 decks)

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