Ethics- Flashcards
In what circumstances can you work with COI?
Informed consent – in writing by party if entirely transparent and
- All parties best served by doing so
Why do you want to be part of RICS?
- Professional recognition
- Mark of excellence
- Global reach – over 140k members in over 140 countries - cousin is MRICS
- Network
- Market advantage
Have you ever received any gifts?
Under our Savills £50 limit. Recorded it on the gifts register.
https://connect.savills.com/page/60723?SearchId=1146025
Lunch at a tenant’s (Dishoom) after – logged with my line manager and department head
What is a Royal Charter?
Royal Charter and Bye-Laws
We’re incorporated by Royal Charter, which sets out our objectives
Our Royal Charter requires us to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world. In practice, the charter means that important changes to our constitution – its bye-laws – have to be ratified by the UK Government, through the Privy Council, even after they’ve been approved by a majority of our members voting at a general meeting.
The continued demand for royal charters, which may seem an antiquated concept, shows that they retain their cachet in the modern professional world as a “gold standard” of excellence and integrity.
When was the RICS founded?
Founded in 1868
When did the RICS gain its Royal Charter?
Royal Charter granted by Privy Council in 1881
What is the RICS mission statement?
Advancing the highest ethical and technical standards for professionals in land, property and the built environment. Protecting and providing benefits to consumers by enforcing standards and codes of best practice.
Are you aware of any RICS guidance on social media use?
- Use of social media guidance (regulation) – V2 – sep 24
- Same standards as rules of conduct (1,3,4)
- V2 specific guidance
RICS will investigate sm posts ivolving: - Discrimination
- Dishonesty
- Threatening/abusive behaviour
- Bullying harassment
- Pattern of frequent concerning comms
- Ignoring warnings/ advice about concerns
Unlikely to investigate: - Critical of org
- Use of professional respectful language
- Are removed when requested
RICS may take disciplinary action
- Tell me about the RICS guidance on Conflicts of Interest.
RICS PS: Conflicts of Interest 2017
- Member must not advise/represent client where
- Party conflict (two different parties)
- Own interest conflict
- Confidential information conflict (information wall)
Informed consent – given in writing by the party if entirely transparaent about material factors
RICS firms must have effective systems and controls
- What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
Split into Rules of conduct for firms use of logo
- Guidelines for personal use of logo
- Both approved by Standards and Regulations Board
- Qualified RICS member you have right to use logo for personal use for example business cards and email signature
- Rules: master logo – font colour cannot be adjusted ; minimum clearance around logo equivalent to size of capital R in RICS
Who is the current RICS president?
President - Justin Sullivan
CEO – Justin Young
- What are the professional obligations of members and firms?
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.
The following professional obligations to RICS are mandatory for RICS members.
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.
The following obligations are mandatory for RICS-regulated firms.
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
- What disciplinary procedures can the RICS impose
- Undertaken by Standards and Regulatory Board
- Triggered by 1. Complaint to RICS an allegation by client . 3rd party OR from info received/ established by RICS
Three levels of disc action:
1. Action by Head of Reg
2. Disciplinary Panel
3. Appeal Panel
Head of Regulation:
Initial Investigation – after investigation:
1. Serve fixed penalty notice – fine and/or caution
2. Make Regulatory Compliance Order (minor breaches e.g. failure of CPD) – written document which states step must take and agreement to pay fine
3. Disciplinary Panel – more serious breaches (includes lay members- non RICS members)
Reg. compliance order
Reprimand
Fine – no limit but proportionate to offence
Expulsion- membership or firm
Unlimited fine (proportionate)
Publication on MODUS or website or local paper
- Refer to regulatory tribunal
Appeal panel can consider member’s /firm’s appeal – can vary the penalty imposed
- What is a Responsible Principal?
The Rules for the Registration of Firms (v7 effective from feb 2022), introduce the requirement for
all RICS regulated firms to appoint a responsible principal.
A responsible principal will have primary
responsibility for ensuring that RICS’ professional, technical and ethical standards are applied,
upheld and supported by an appropriate assurance framework within a regulated firm.
A Responsible Principal Application must be completed prior to registering your firm for RICS
Regulation
What is the aim of the RICS?
- to maintain the highest standards of education and training
2.To protect consumers through strict regulation of professional standards - to be leading source of information and independent advice on land. property construction and associated environmental issues
If someone sent you a case of champagne following a very large job that you had completed for them, what would you do then?
Timing & Proportionality are incredibly key in gifts. Although in theory there is a rule about not taking gifts, the key thoughts in your mind are about Timing and Proportionality.
Accepting a gift part way through a job is always a no, accepting a gift once you have completed a job if you’re not on the cusp of pitching for something else/could be viewed as a bribe, may be acceptable if it is proportional and if its really required.
What are the general principles around any sort of gifts?
Proportionality and timing
If not accepting a gift is really going to offend them what would you do?
Mention that you aren’t able to accept it, you are really appreciative, what you will do is auction it off in our next charity auction if that’s acceptable.
What are your CPD requirements once you have qualified? / before
20 hours per year, 10 hours at least needs to be formal.
Why is CPD important?
To keep up to date with the latest best practices and information in the industry -> to best advise clients and relates to ROC 2 professional competence and ROC 3 – good quality and diligent service
What else is required within your CPD? Ethics training?
To keep up to date with the rules of conduct and ethics training.
Can you give me the levels of turnover and PI cover that are required as a minimum?
£100,000 or less £250,000
£100,001 to £200,000 £500,000
£200,001 + £1 million
These have been around for a long term so out of date, most firms will have much higher
If you were going to set up by yourself in practice, what would you have to do?
RICS compliance:
- Inform RICS filling in Firm Details Form
- Appoint Responsible Principal
- Register with RICS for regulation of firm
- Arrange PII and send details to RICS
- Set up procedures for client money handling
- Register for VRS if undertaking valuations
- Obtain RICS approval for complaints handling
- Set up complaints log
- Appoint complaints handling officer
- Plan for succession
- Ensure CPD logged online
- Ensure completion of online RICS Annual Return at end of year
Statutory Compliance:
- Must disclose business name
- Insurance compliance for public and employer liability
- Disability Discrimination compliance (Equality Act)
- Financial services compliance
- Bribery Act 2010 compliance
- Appoint Money Laundering Reporting Officer (MLR 2017)
- H&S compliance (HS Act 1974 )
- Asbestos Register (Control A Reg 2012)
- Fire safety compliance
- Register for Data Protection (GDPR DPA 2018) - ICO
- Inform HMRC for VAT
- Ensure compliance with employment laws
- And insurance – employer liability, director
- Recruitment of staff (Don’t talk about this) -
What is the role of the RICS? - MPL
- Provide regulation
- Provide training and guidance materials
- Set the gold standard