Ethics Flashcards
Can you tell me RICS Rule of Conduct No 1 and give me an example of when you have demonstrated it?
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Example Behaviours:
- Keeping confidential information safe
- Acting to prevent bribery or any other unethical practice (money laundering)
Can you tell me RICS Rule of Conduct No 2 and give me an example of when you have demonstrated it?
Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise.
Example Behaviours:
- Undertaking CPD
- Help to train the next generation of surveyors
Can you tell me RICS Rule of Conduct No 3 and give me an example of when you have demonstrated it?
Members and firms must provide good-quality and diligent service.
Example Behaviours:
- Working in line with RICS requirements and guidance
- Practice proper record keeping and QMS procedures
Can you tell me RICS Rule of Conduct No 4 and give me an example of when you have demonstrated it?
Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion
Example behaviours:
- Treating everyone fairly and not discriminating
- Speak up against harassment and bullying
Can you tell me RICS Rule of Conduct No 5 and give me an example of when you have demonstrated it?
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.
Example Behaviours:
- Make use of the RICS decision tree
- Respond to complaints in a timely and cooperative manner
What is the RICS Rules of Conduct Appendix A?
Professional obligations to the RICS.
Can you give me the 3 responsibilities for members?
- Members must comply with the CPD requirements set by RICS.
- Members must cooperate with RICS.
- Provide all information to the RICS standards and regulations board if requested.
Can you give me the responsibilities for firms?
- Publish a COMPLAINTS HANDLING PROCEDURE.
- Have appropriate level of PROFESSIONAL INDENMITY.
- Firms with a SOLE PRINCIPAL must make arrangements for work to continue if they are no longer capable.
- COOPERATE with RICS
- PROVIDE INFORMATION to standards and regulations board if requested.
- Have DESIGNATIONS to denote they are regulated by the RICS.
7.
What is the RICS motto?
Est modus en rebus.
Briefly explain the RICS structure?
Privy Council > Governing Council > standard and regulations / RICS board.
RICS Privy Council at the top.
Governing council sit below them.
RICS regulations and Standards / RICS Board sit beneath but equal.
What are the two document types? Give me an example of each?
Professional standards & practice information.
Professional = Surveying safely 2nd edition 2024.
Practice = Cost reporting, 1st edition 2015.
What are the bye laws?
The RICS Bye-Laws are a set of rules that govern the Royal Institution of Chartered Surveyors (RICS).
They enforce the rules of conduct, allow disciplinary powers (fines, suspension, expulsion) and prohibit unethical standards, such as Conflicts of Interest, Bribery.
What is Gleeds complaints handling procedure?
The Gleeds CHP is as such:
- Address the complaint to the relevant appointed principal
- Ensure the complaint is in writing
- Within 7 days of receipt, Gleeds will contact the complainant to summarise what is understood about the complaint and actions leading up to it
- 21 from this the principal will write to the complainant with the outcome of any investigation
- If the complainant isn’t happy then it will be raised with the CEO
- If still not satisfied, Gleeds will look to go through mediation using the RICS dispute Resolution Service
What must be included in a complaints handling procedure?
A complaints log, as well as a method of alternative dispute resolution.
Is there any RICS information about handling complaints?
Yes, the Professional Standard “Complaints Handling”. Published 2023
What are the RICS required Professional Indemnity levels?
£0 - £100,000 = £250,000 cover.
£100,000.01 - £200,000 = £500,000
> £200,000 = £1mil cover.
What are the CPD requirements for members? And what do you need to do every 3 years?
Minimum 20 hours with at least 10 formal.
Every 3 need to be up to date on ethics.
What are the three sanction types for members?
1) Fixed penalty
2) Regulatory compliance Order
3) Regulatory sanction
When may a fixed penalty be applied?
1) Failure to comply with the requirement regarding CPD
2) Failure to comply with the obligation to provide information to the RICS
3) Failure to pay fees
What is the fine for members for sanctions?
£150 (first 28 days)
£250 if payment is not made
If this is not made within 56 days of the original penalty, the member is referred to the regulatory tribunal.
What is the fine for firms for sanctions?
£300 (first 28 days)
£500 if payment is not made
If this is not made within 56 days of the original penalty, the member is referred to the regulatory tribunal.
What is a regulatory compliance order?
The member will take or refrain from taking certain actions in the future.
The member will pay a fine or cost where appropriate.
Why will a regulatory compliance order be given?
The order will be used in response to a failure to comply with the rules of conduct, but where:
The breach was not so serious that a public hearing would be needed to protect the public or their interest.
The member admits to their wrongdoing and is willing to cooperate with the RICS in future
What is a regulatory sanction?
Regulatory Sanctions:
A member of the tribunal, or the tribunal as a whole can impose sanctions from a warning to expulsion from the RICS
What is the Bribery legislation?
Bribery Act 2010
What are the four offences under the act?
1) Giving a bribe
2) Receiving a bribe
3) Bribing a foreign official
4) Failure by corporation to prevent a bribe
What are the punishments under the Bribery Act 2010?
The penalty can be up to 10 years in prison and/or an unlimited fine.
6 principles for bribery prevention
P - Proportionate procedures
T - Top level commitment
R - Risk Assessment
D - Due Diligence
C - Communication
M - Monitoring and review
What is Gleeds gift policy?
Gleeds policy is that employees should take a view as to when a gift is inappropriate.
If a gift is taken, it should not be greater than £50 in worth, and cannot be monetary
What is money laundering?
Disguising elicit gotten gains as a legitimate source of funds.
What are the regulations surrounding money laundering?
Anti-Money Laundering Act 2018
What are some signs of money laundering?
Cash payments, shady about sources of funds, funny payment requests.
What are the 3 types of CoI?
Party Conflict
Confidential Information Conflict
Own Interest Conflict
How can a CoI be managed?
Inform the necessary parties of the conflict, look to proceed with informed consent.
What MUST RICS firms do regarding Client money?
RICS Surveying firms MUST be registered with the RICS Client Money Protection Scheme for Surveying Services.
1) Hold client money in a client money account which the RICS firm has exclusive control
2) Ensure the account does not hold any funds other than the client money paid into it (And any money withdrawn in error is returned in full).
3) Ensure all client money accounts contain the word ‘client’ and the Client’s actual name
4) Ensure the money is immediately accessible, even at the sacrifice of interest
When was RICS founded?
1868
When did it get its Royal Charter?
1881
Who gave the Royal Charter?
Queen Victoria
What gives the RICS the power to impose sanctions?
The Royal Charter
What does the Royal Charter do?
Provides the RICS with an INDEPENDENT LEGAL PERSONALITY to manage its members and affairs
Name three RICS committees
1) Knowledge and practice
2) Nomination and remuneration
3) Audit risk assurance and finance.
What did the 2022 Bichard review do?
The formation of the Knowledge and practice committee.
The merging of the nomination committee and remuneration committee
The RICS Board which overtook the management board.
When did the standards and regulations board come into fluition?
Following the 2018 Levitt review.
What was the 2018 levitt review?
An internal review on the RICS which discovered financial mismangement
What do the standards and regulation board do?
Oversee ethics and compliance.
What is the difference between an active vs passive bribe?
Active = Offering a bribe.
Passive = Receiving a bribe.
When must a firm register with the RICS?
1) Provide services to the public
2) Operate in regulated area A (UK)
3) At least 50% of the firms principles are RICS members.
When MAY a firm register with the RICS?
1) Providing services to the public
2) At least 25% of the firms principles are RICS members.
What is the responsible principle?
The spokesperson for the firm to the RICS.
They have primary responsibility for ensuring that RICS professional, technical, and ethical standards are applied.
What must the responsible principle do?
They must satisfy conditions A B & C.
What must firms provide annually to the RICS?
- What services are being offered
- Staff level
- Clients we work for
- Complaints handling procedure
- PI details
- Whether the firm holds Client money.
What would you say if a Client asks to pay for your services in lump sum?
I would politely decline and ask to set up an account to store the money (like an escrow) and draw down from it using the agreed drawdown schedule.
Why can’t you accept lump sum payments for your services?
Because of any complications with the fee such as if we were to stop trading then we would owe the Client money.
What is the role of the privy council of the RICS?
The Privy Council advises the monarch (King) on how to give legal effect to Orders in Council and Proclamations. Ensure Royal Charter is adhered to.
