Ethics Flashcards
What are the 5 ethical standards of RICS?
- Integrity
- Trust
- Responsibility
- Respect
- High standard of service
How have you provided a high standard of service?
Be clear on the services I am providing, act within scope.
Example: regular client reporting, tailoring approach to client and ensuring consultants are paid on time
How do I act with integrity
Be trustworthy - respect confidential information - don’t accept gifts
Example: declining gifts from contractors / consultants. Working under an NDA. Fair and transparent procurement
How do you act with trust
Be trustworthy - act in a way that promotes myself and my company and the profession.
Example: reposting and dealing with local neighbours complaints / public consultation.
Take responsibility how ?
Be responsible for my actions and responding to complaints in an appropriate manner.
Example: recommending additional fees if works have been done - rectifying mistakes.
Treat others with respect how?
Be courteous and polite to all
Example: ensuring all consultants have the opportunity to voice opinions during meetings and set realistic deadlines.
5 principals of RICS regulation?
1.proportionality
2.Accountability
3.Consistency
4.Targeting
5.Transparency
What are the roles of the RICS
- accredits professionals
- helps set and maintain and regulate standards
-provides advice to government and policy makers
- ethics - gives clients security their interests are being properly taken care of.
How does the RICS maintain professional standards?
5 ethical standards
5 rules of conduct
What are the 5 rules of conduct?
Act with integrity
Maintain professional competence
Provide diligent service
Promote diversity and inclusion
Act in the public interest - take responsibility for actions
Why does the RICS have rules of conduct
Set the standards for professional conduct (behaviour) and practice (technical) - this is expected of members and firms registered under the RICS
What happen if a member contravenes the rules
Penalties - caution, fine, conditions, removal of registration, expulsion
What are professional statement docs?
Mandatory requirements for the RICS members and firms - sets out behavioural competence and technical expectations.
Examples:
- Client money handling 2019
- conflict of interest 2017
- countering bribery, money laundering and terrorist financing 2019
- complaints handling 2016
What is a guidance note ?
Documents that provide recommendations or outline good practices as followed by competent and conscientious practitioners
Management of risk 2016 - sets out risk identification and quantification techniques
Design and specification 2013
- understanding project brief
- managing design information
- identifying methods for change control
What is the difference between a progressional statement and a guidance note ?
Professional statement - mandatory for all RICS members and firms
Guidance note - recommendations for good practice
Biggest issue facing RICS?
- diversity, gender and race.
- access to industry - foot in the door industry
- cloud still hanging over industry from levitt review in 2021
What is the H&S act 1974
- primary piece of legislation that governs H&S in the workplace in UK
- places a duty upon the employers to ensure reasonable safety of employees and places a duty on employees to ensure H&S of others that might be effected by their work
How does H&s act impact role of Project Manager
Duty of PM to ensure everyone is aware of their duties.
CDM 2015
- promotes good management and common sense
- places responsibility on those best placed to deal with H&S - PC and PD
- employer must appoint duty holders, ensure time and resource is sufficient, issue f10. Ensure welfare is provided.
During design- work to building regulations - minimum standards to protect H&S in the design and construction and use of building.
During contruction
- cpp
-rams
- site inductions
- tool box talks
Companies gift policy
- approval from director If we require to entertain business contacts with over 100 pounds
Approval required if being entertained over £50 and MD if over £1000
Christmas charity raffle for gifts given to company.
If in doubt do not accept.
RICS gift policy
Professional statement RICS - associated counter bribery, corruption, money laundering and terrorist financing
RICS regulated firms must have a written policy on anti bribery and corruption and encourage transparency.
RICS members must declare gifts to their employees.
Consider:
- anti bribery act 2010
- m3 policies on gifts
- proportionality
- tax implications
What is the structure of the RICS
RICS have a seat on privy council.
The governing council sits over the RICS governance structure and the RICS board and standards and regulation board.
RICS board manages membership services committee, audit and risk assurance, knowledge and practice and nominations and remuneration committee.
Standards and regulations board sits over standards committee, qualifications and assessments committee and dispute resolution appointment board.
What is the structure of the RICS
RICS have a seat on privy council.
The governing council sits over the RICS governance structure and the RICS board and standards and regulation board.
RICS board manages membership services committee, audit and risk assurance, knowledge and practice and nominations and remuneration committee.
Standards and regulations board sits over standards committee, qualifications and assessments committee and dispute resolution appointment board.
What is RICS motto
Modus est rebus - there is measure in all things
What is the royal charter
Means RICS have a seat on privy council and advise crown (his majesty’s government)
Royal charter requires members to promote the profession for the public benefit
Self regulation
Gold standards of excellence
Think about public benefit
How many members
C. 140k
10k firms globally
How do you become a member
Demonstrate professional knowledge and skills
Understand and commit to RICS ethical standards
What is ethics
Study of moral standards and how they effect conduct
What are the 4 levels of membership
- Trainee / apprentice
- ASSRIC - associated RICS
-MRICS - member (charted qualification)
-FRICS - fellow
Why do I want to be a member of the RICS
Be a part of an institution that promotes the highest standard and ethics within our industry
Recognition as a professional
Broaden my network with RICS CPD opportunities
What is the CPD policy
48 hours per year for APC candidate
20 hours for members - 10 must be formal with clear learning outcomes.
Record them online
Must update their understanding on professional and ethical standards every 3 years.
What professional group bodies are there within the RICS
18 professional group boards covering specific technical segments / services.
- offer networking and marketing insights
- e.g project management group or dispute resolution group.
- each professional group has an elected board and is responsible for outlining standards of competence and practice.
Professional bodies within the RICS
- RICS regulation confidential hotline- can assist with ethical issues
- matrics - young / new members support group
- lion heart - charity to support members - financial support, counselling
3 obligations of RICS
- Comply with CPD policy
- Corporate with the RICS
- Provide information if requested to by regulation board
7 obligations of RICS regulated firms
1 publish CHP including alternative dispute resolution provider
- Ensure all work is covered by professional indemnity cover
- Firms with a sole principal must make arrangements for their professional work to continue in the event of their incapacity
- Cooperate with RICS
5 provide information requested by Standards and regs board
6 display in their business literature that they are regulated by RICS
7 report to RICS any matters they are required to report under the rules for registration of firms
What are the requirements of a RICS regulated firms
- adequate prof indemnity insurance
- CHP
- security of clients money
- comply with employment leg
- training programme for employees
- individual RICS professionals must carry out CPD
When does a firm become eligible
If the firm provides surveying services to public
Atleast 25% of principals are RICS members
When does a firm become mandatory for RICS registration
If over 50% of principals are RICS members
How does RICS monitor a firm
- annual income
-Client accounts - correspondence
- regulation board assures members follow rules
Benefits of being RICS regulated
Reputationally beneficial,
Practice globally recognisable standards
Recognised that your firm / you are behaving ethically, required competence. Manages conflicts transparently. Safeguards clients money
What is the RICS CHP
- a firm must have a CHP
- it must include a redress system
- must have a complaints handling office and complaint handling log
- CHP must be free of charge initially
- sole traders can’t deal with complaints themselves
- time limits for RICS CHP - ack 7 days , formally respond 21 days
2nd stage redress if the client is dissatisfied
M3 CHP
Inform line manager
Ack 5 days
Formally respond 14-18
Formally record and investigate
Internal lessons learnt to be held after
What are principals of uk law
Stat leg - act of parliament - regulation and bylaws
Common law - derived from previous Judicial de ions of courts rather than written legislation
Criminal law - offence against society and the crown prosecuted those accused of breaking law
Civil law - offiences against an individual or private party e.g family matters or contracts
Case law - relevant case law can be used to help a judicial decision
Examples of legislation
H&S 1974
Equality act 2010
Bribery act 2010
Data protection act 2018 (GDPR)
Client money handling
Overview;
Separate named account
Must be able to identify the client
Detail;
- firms must preserve the security of clients money entrusted to them. Money must be clearly linked to client in the event of insolvency.
What is professional indemnity insurance
Mandatory for surveyors working in practice
Protects surveyors client and third parties against negligence claims where duty of care is breached
Bought from a specialist insurer recommended by RICS
On an each claim basis - means you can claim against for every claim made - no aggregate cap
Retrospective claims can be made
Run off cover (6 years for 1mil Pi) protects from claims post operation
15 years recommended
PI needed
Up to 100k Pa turn over - 250k
Up to 199k Pa turn over - 500k
Over 200k Pa need - min 1mil pi
What would I do if my client gave me a bag of cash
- due diligence - where did it come from ?
I can accept but must register cash with HMRC to ensure paying VAT
Only up to 10K for singal transactions
Consider bribery act and money laundering
What do I do if I set up a practice tomorrow
- notify the RICS
- gain pi insurance and public liability
- register for regulation as a firm
- meet requirements of the rules and conducts of firms
- register on companies house
Is it appropriate to give advice to a friend
- unless they are paying for services my insurance will not cover
- give name of other companies a friend could use
Work within my competence
