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
2
Q
Give your opinion on why the RICS has rules and codes of conduct?
A
- Consistency of service and approach, maintaining professional standards, governance and regulation
- Rules help members to act in a professional capacity
- Rules maintain and promote the usefulness of the profession for public advantage
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
4
Q
What are the Rules of Conduct for members?
A
- Be honest and act with integrity
- Maintain their professional competence
- Provide good-quality and diligent service
- Treat others with respect and encourage diversity and inclusion
- Must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
5
Q
When did the New Rules of Conduct become effective?
A
Effective from 2 February 2022
6
Q
What are the key changes from the previous Rules of Conduct?
A
- A simpler structure. Easier for RICS members and firms to understand our rules, providing more confidence for clients and the public.
- 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.
- 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.
- Understanding evolving technology. The Rules highlight the importance of understanding the evolving use of data and technology, and the associated benefits and risks.
- 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.
7
Q
What are the professional obligations for RICS members?
A
- Members must comply with the CPD requirements set by RICS.
- 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.
8
Q
What are the professional obligations for RICS firms?
A
- 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.
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
10
Q
What are the different types of document that the RICS produce and what is their status?
A
- International Standards - Mandatory
- RICS Professional Statement - Mandatory
- RICS Code of Practice - Mandatory or recommended good practice
- RICS Guidance Note - Recommended best practice
- RICS Information Paper - Information and/or recommended best practice
- RICS Insight - Information only
- RICS Economic / Market Report - Information only
- RICS Consumer Guide - Information only
- Research - Information only
11
Q
Why do we have guidance notes, and do you have to follow them?
A
- Outline best practice within the profession
- They should be followed and members should remain up to date to ensure they are competent
- Provides protection against professional negligence claim
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
13
Q
Can you explain how you act with integrity?
A
- Being trustworthy in all that you do
- Respecting confidential information
- Not offering or accepting gifts, hospitality or services which might suggest improper obligation
14
Q
Can you explain how you take responsibility?
A
- Be accountable for all your actions
- If you think something is not right, be prepared to challenge it and raise the matter as appropriately with a colleague
- If someone makes a complaint against you, operate the appropriate CHP
15
Q
Can you explain how you would treat others with respect?
A
- Be polite and respectful
- Never discriminate
16
Q
Can you explain how you provide a high standard of service?
A
- Act within your scope of competence
- Communicate with clients in a way that allows them to make informed decisions
- Be clear about about what service your client wants and the service you are providing
17
Q
Can you explain how you would maintain professional competence
A
- Only undertake work that they have the knowledge, skills and resources to
carry out competently - Undertake CPD
- Stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards.
18
Q
What should employers do to create an ethical environment?
A
- Establish confidential setup for “whistle blowing” independent of the normal chain of command
- Include ethical evaluations into formal performance appraisals
- Include ethical standards into employee hiring, employment contracts and training
- Become chartered with the RICS
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)
20
Q
What tools are available to help members make ethical decisions?
A
RICS Ethics Decision Tree
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
- Potential Conflict of Interest
- 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
22
Q
What procedures must you follow if you are starting up a new firm?
A
- Contact the RICS for guidance
- Apply the RICS ensuring the Rules for Registration is being followed
- Appoint a contact officer for all RICS communications
- Prepare a complaints handling procedure
- Obtain PI and run off insurance cover
- Abide by the Rules of Conduct for firms
- Confirm whether will be handling client money
23
Q
What determines when a firm has to register with RICS?
A
If the number of Principles is over 50%
24
Q
What sort of information has to be submitted within the RICS Annual Return?
A
- Type of business and staffing
- Nature of clients
- Complaints handling procedure details and log
- PI Insurance Certificate
- Whether the firm holds client money
25
What insurances would need to be put in place if you were going to set up your own business?
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
What are the CPD requirements for APC and MRICS Surveyors?
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
How do you define between formal and informal CPD?
RICS CPD Decision Tree
Formal - Structured learning with clear learning objectives and outcomes
Informal - Self-managed learning that is relevant to professional role
28
How do you go about selecting what CPD you should be doing next year?
1. Consider the weaker / limited areas of my knowledge
2. Consider Hot Topics
3. Consider future project requirements
29
Can you accept gifts from the client or contractor?
Gifts and hospitality can be accepted, the key is to make an assessment on the gift proportionality and timing
30
What things would you consider when considering if a gift is appropriate and in accordance with the Rules of Conduct?
Consult ethics decision tree
1. Value
2. Timing
3. Will it effect your ability to act impartially
31
What does the RICS ask you to consider regarding gifts?
1. Sufficient facts on the issue
2. Is it legal
3. In line with the RICS ethical standards
32
Can you explain what a conflict of interest is?
Anything that impedes an individual or firms ability to act impartially and in the best interest of a client
33
Can you name 3 types of conflicts which are outlined in the 2017 conflict avoidance practice note?
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
Give some examples of conflict of interest?
1. Acting for both developer and contractor
2. A friend working for another member of the project team
35
What action should you take in the event of a conflict of interest?
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
Does the RICS produce any information on conflicts of interest?
Conflict of interests RICS Professional Statement - effective from 1st January 2018
37
What is a bribe?
An inducement or reward offered, promised or provided in order to gain any commercial, contractual, regulatory or personal advantage
38
What is the Bribery Act 2010?
Act of parliament of the UK that covers criminal law relating to bribery
39
What is your position for compliance with the bribery act?
My company has an anti-bribery and corruption policy which applies to me as an employee
40
What are the potential consequences for not adhering to the Bribery Act?
Imprisonment or fine
41
What is money laundering?
Money which is presented as legitimate but is instead from an illegitimate source
42
What do you do if you suspect money laundering?
1. Raise it with my director
2. Submit a report to National Crime Agency
43
What regulations are associated with money laundering?
UK Money Laundering Regulations 2007
44
What is the maximum amount in cash you can accept as payment?
10,000 euros
45
What are some of the red flag indicators relating to money laundering?
1. Evasive/secretive client
2. Client with criminal associations
3. Someone who wants to make large cash payments
46
What is corruption?
The misuse of public office or power for private gain
47
What is price fixing monopoly cartel?
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
What is terrorist financing?
The solicitation, collection or provision of funds with the intention that they may be used to support terrorist acts or organistations
49
What is modern day slavery?
People being forced to work against their will or illegally
50
How would you report modern day slavery?
Section 52 of the modern-day slavery act says you have a duty to notify the home office
51
What is meant by PI Insurance?
PI is insurance to cover the damages or losses suffered by a client due to negligent actions, omission or errors of a professional
52
Reasons PII is needed for RICS firms?
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
What if the loss exceeds the cover provided by PI insurance?
The firm is liable for the difference - in assets etc (unless the liability is capped)
54
What are the minimum levels of indemnity and how is it calculated?
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
What measures should be taken to try and avoid PI claims?
1. Keep full and detailed records of meetings and conversations
2. Record recommendations and advice given
3. Use RICS guidelines
56
If you made a mistake within your cost plan, what would your insurance company expect?
1. To be notified
2. Assess the level of mistake
3. Comply with conditions within insurance policy
4. Advise the client ASAP
57
How long should run off cover be in place?
Depends on the type of contract
- 6 years if the contract is executed underhand
- 12 years if contract is executed as a deed
58
What are the subjects RICS investigate against a member or firm?
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
How can a disciplinary proceeding be triggered?
1. Someone complaining to the RICS
2. An allegation by a client or third party
3. Information received or established by the RICS
60
What three actions can be imposed after the end of the investigation stage?
1. Fixed penalty
2. Consent order
3. Disciplinary panel
61
In the case of a breach of rule of conduct, what is the procedure?
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
On what grounds can a member be expelled from the RICS?
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
