Ethics Flashcards
What is the importance of the Royal Institution of Chartered Surveyors (RICS) in regulating professional standards and ensuring quality among its members?
Protecting Public Interest - The primary reason for RICS’s regulatory role is to safeguard the interests of clients and the public. By enforcing standards of competence, ethics, and professionalism, RICS ensures that its members act honestly, transparently, and responsibly in their dealings, which builds trust in the profession.
Maintaining Professional Credibility - RICS’s regulation ensures that the title of “Chartered Surveyor” signifies a high standard of expertise and ethical behavior. This credibility is crucial for the profession’s reputation and assures clients that they are dealing with competent and trustworthy professionals.
Promoting Consistency and Quality - By setting uniform standards globally, RICS ensures that all its members provide consistent and high-quality services. This consistency helps clients have confidence in the reliability of the services they receive, regardless of the geographical location of the surveyor.
Mitigating Risk and Liability - RICS’s standards help manage risks associated with surveying and construction projects by promoting best practices and reducing the likelihood of disputes and professional negligence. This not only protects clients but also minimizes legal risks for surveyors.
Enhancing Market Confidence - The assurance that RICS members are regulated professionals with up-to-date skills fosters confidence among investors, developers, and other stakeholders in the property and construction markets. This is particularly important for attracting investment and facilitating smoother transactions.
What are the Rules of Conduct for both members and firms?
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Members and firms must provide good-quality and diligent service.
Members and firms must treat others with respect and encourage diversity and inclusion.
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.
Can you provide examples of Rule 1?
Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others.
Members and firms are open and transparent with clients about their fees and services.
Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement.
Members and firms do not take unfair advantage of others.
Members and firms act to prevent others being misled about their professional opinion.
Can you provide examples of Rule 2?
Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.
Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently.
Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently.
Members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work.
Members and firms stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure that their directors, partners and employees do so.
Can you provide examples of Rule 3?
Members and firms understand clients’ needs and objectives before accepting any professional work.
Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work.
Members and firms communicate with clients and others clearly and in a way they can understand.
Members and firms communicate to clients the material information on which their professional advice and opinion is based.
Firms have effective quality assurance processes for their work.
Can you provide examples of Rule 4?
Members and firms respect the rights of others and treat others with courtesy.
Members and firms do not bully, victimise or harass anyone.
Firms check that supply chains do not involve modern slavery or other abuses of the workforce.
Members and firms work cooperatively with others.
Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias.
Can you provide examples of Rule 5?
Members and firms support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns.
Members and firms ensure that public statements made by the firm, or in which members are (or could be) identified as members of the profession, do not undermine public confidence in the profession.
Members and firms respond to complaints made against them promptly, openly and professionally.
Members and firms cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully.
Members and firms manage their professional finances responsibly.
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.
Can you accept a gift from your client or contractor?
I would not accept gifts, hospitality, or services, which might suggest an improper obligation.
Gifts and hospitality can be accepted in certain circumstances, the key is to consult the ethics decision tree and make an informed decision.
Key points to note:
- Timing of the gift or hospitality.
- Proportionality of the gift or hospitality.
- Consideration to the impartiality, or perceived impartiality of the gift or hospitality offered.
What things would you consider when assessing if a gift or hospitality is appropriate to accept?
The value of the gift or hospitality.
Is the gift or hospitality offered at an appropriate time (i.e. not before a tender award or final account settlement).
Is it proportionate to the working relationship.
Will the gift affect my ability to act impartially.
Is it proportionate to gifts being offered to others.
Who is the gift or hospitality being given to (is it just one person or a range of people from different organisations).
Is it in line with RICS Rules of Conduct and relevant legislation.
Can you explain what a conflict of interest is?
A conflict of interest arises in a situation where there may be an actual, perceived, or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.
Has RICS published any information on conflicts of interest?
Conflicts of Interest, 1st edition, March 2017. (was reissued in July 2023 as a professional standard)
Is the Conflicts of Interest, 1st edition, March 2017 a guidance note or professional standard?
Professional standard.
Can you name the 3 types of conflict outlined in the 2017 professional statement?
Party Conflict:
A situation in which the duty of an RICS member or regulated firm acts in the interests of a client or other party in a professional assignment which conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.
Own Interest Conflict:
A situation in which the duty of an RICS member or regulated firm acts in the interests of a client in a professional assignment which conflicts with the interests of the same RICS member/firm.
Confidential Information Conflict:
A conflict between the duty of an RICS member or regulated firm to provide material information to one client and the duty of that RICS member/firm to another client to keep that same information confidential.
Can you provide working examples of a conflict, or potential conflict of interest?
Acting for both the developer and contractor on the same project.
Having other obligations or pressures that detract you or affect your relationship with the client (e.g., acting as an expert witness where you/your firm has an interest in the outcome of the proceedings).
What is informed consent?
Informed consent occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to instruct an RICS-regulated firm or RICS member to proceed with the assignment.
What action should someone take if a conflict of interest situation (or potential situation) arises?
As soon as you become aware, disclose to the client in writing and detail the nature of the conflict.
You are instructed to work on a proposed development which would require the removal of a nature reserve. You have very strong views on protecting the environment. What should you do?
Ask myself the question - could I work on the project without bias and give the client proper and impartial advice?
Notify the client in writing of the potential conflict of interest.
I may need to respectfully decline the commission and offer somebody else in the business who could work on the development.
What does CPD stand for?
Continuing professional development.
What are the CPD requirements for Chartered Surveyors?
Members must undertake a minimum of 20 hours CPD each calendar year (January to December).
Of the 20 hours at least 10 hours must be formal CPD. The remainder can be informal CPD.
Members must maintain a relevant and current understanding of RICS professional and ethical standards during a rolling three-year period.
Members must record their CPD activity online by 31st January.
What sort of professional development have you done during your training period?
In-house training courses.
External training courses.
Personal reading of relevant articles.
Mock final assessment interviews.
Seminars and lectures.
How would you define formal and informal CPD?
Formal: Structured learning that has clear learning objectives and outcomes. Examples include:
Professional training course.
Structured online training.
Learning that includes an assessment measure.
Informal: Self-managed learning that is relevant or related to my professional role. Examples include:
Private study.
On-the-job training.
Attendance to informal seminars or events where the focus is on knowledge sharing.
What tools are available to determine if CPD is formal or informal?
RICS have produced a CPD decision tree.
Are there any activities that cannot count towards a member’s CPD requirements?
Yes, any activity that does not have a clear learning purpose, or does not relate to a member’s role and/or specialism cannot be considered as appropriate CPD.
How is CPD recorded once a surveyor is qualified (MRICS)?
CPD can be recorded on RICS’ website or by the app.
How will you go about selecting CPD subjects over the next 12 months?
I will target CPD in the following areas:
Consider weak and limited areas of my knowledge to develop.
Consider industry ‘hot topics’ that may be relevant for the next 12-18 months.
Consider future projects and the knowledge I’ll need to execute my professional appointment.
How do you keep up to date with ‘hot topics’ and developing issues within the industry?
I regularly review RICS’ website and journals.
I’ve registered with key CPD providers and receive regular information on the latest industry matters.
Discussions with colleagues.
I regularly read construction-related news.
I keep in touch with my employer’s research & development team and read their publications.
Can you tell me a time where you have complied with RICS code of conduct rule 2?
I have actively maintained and complied with RICS CPD requirements, ensuring continuous professional development to uphold industry standards. I have recorded and monitored my CPD activities, meeting the minimum annual requirement of 20 hours, with at least 50% being formal CPD in line with RICS regulations. To ensure compliance, I have kept an up-to-date CPD log.
Can you tell me a time where you have complied with RICS code of conduct rule 1?
Whilst on the GSK commission, I was approached by an individual seeking information regarding the final account agreement between the client and the management contractor. Recognising that this information was confidential, I informed them that I was unable to disclose any details due to my professional obligation to maintain client confidentiality.
Can you tell me a time where you have advised with RICS code of conduct rule 1? (Level 3)
I have on several projects I’ve been involved with, advised the client that a contractor should be paid more than they had applied for to reflect the true value of works undertaken.
After reviewing the applications I received and assessing the actual work completed, I identified the discrepancy between the contractor’s application and work completed. In providing this advice, I ensured that the payment process remained fair and compliant with the contract, avoiding potential future disputes or claims.
My recommendation was based on the RICS ethical principles of integrity, fairness, and providing a high standard of service, ensuring that the contractor was compensated correctly.
By advising the client to act transparently and fairly, I reinforced good commercial practice while upholding professional ethics within the project. This advice was accepted, and the client adjusted the payment accordingly, maintaining a positive relationship with the contractor and ensuring compliance with contractual and ethical obligations.
