Ethics Flashcards
What does RICS stand for
Royal Institution of Chartered Surveyors
Royal Charter
RICS formed in 1868, gained royal charter in 1881.1947 name change to the RICS.
Gives the organisation a legal personality. Granted by the monarch under the guidance of the privy council
Required organisation to maintain the usefulness of the profession for the public advantage
Governed by the General Council.
RICS governance structure
Independent professional regulation is guaranteed by the governance structure
Governing Council (29 members) at the top
Regulations and Standards Board - responsibility for exercising RICS’ regulatory functions (accountable to governing council but not directed by them)
RICS Board - responsible for delivery business plan and oversight of operations
Definition: surveying
Practice of surveying is defined as including ‘securing the optimal use of land and its associated resources to meet social and economic needs’.
Rules of Conduct - Rule 1
+ Example behaviour
Members and firms must be honest, act with integrity and comply with all of their professional obligations including those to the RICS
- don’t allow myself to be influenced by gifts . E.g turning down corporate football tickets offered by an interested party before a bid deadline.
RICS Rules of Conduct
Effective 2 Feb 2022
promote and enforce the highest ethical standards
The Rules of Conduct apply to all members (as defined in Bye-Law 5.1) and firms regulated by RICS.
Replace 3 previous documents which split out members and firms into different documents. Simplified and more clarity.
Also reflect increasing important of things like diversity & inclusion.
5 rules + appendix A setting out members and firms obligations to RICS
Advantages of being a chartered surveyor
Status
Recognition
Market advantage
Network
Knowledge
ROC - Rule 2
Members and Firms must maintain professional competence. Also ensure all work is undertaken by a competent individual who has the necessary expertise
- I have ensured that sub contractors used when preparing marketing particulars have the necessary competence as part of tendering for quotes.
ROC - Rule 3
Members and Firms must provide good quality and diligent services.
- agree with the scope of the service to be provided and timescales with the client and ensure I stick to this.
ROC - Rule 4
Members and Firms must treat others with respect and promote diversity and inclusion.
- attended uni open day to promote profession
- moved viewing day to avoid Ramadan so that parties could attend outside of their fast
ROC - Rule 5
Members a firms must act in the public interest, take responsibility and act to prevent harm and maintain public confidence in the profession
- act professionally on social media making sure not to put the profession into disrepute
ROC - Appendix A
Members and Firms obligations to the RICS
ROC Appendix A (members obligations)
- Maintain CPD requirements set out by RICS
- Promptly provide all info reasonably requested to RICS Standards and regulations board (or those acting with delegated powers on their behalf)
- Cooperate with RICS
ROC Appendix A (firm obligations)
Cooperate with RICS
Promptly provide all info reasonably requested by RICS Standards and Regulations Board (or those acting with delegated powers)
Publish a CHP that includes a ADR provided approved by the RICS. Also maintain a complaints log.
Ensure all current and previous work is covered by adequate PI cover that meets requirements of the RICS.
If sole principle then must have appropriate arrangements in place for their work to continue in their absence.
Denote that you are an RICS regulated firm on all business literature.
Report to RICS any other mater that they are required to report under the Rules for the Registration of firms
What is the RICS Ethical Decsion Tree
Framework of questions for members to ask when asked to act in potentially unethical way.
Key questions are 1. is it legal, 2. Have you consulted with others/appropriate people, 3. Press test
RICS regulation confidential hotline offers assistance on ethical issues
How many RICS members are there?
Over 130,000 qualified members and trainees worldwide.
What are Specialist Professional Groups
Sit beneath RICS Board // RICS Standards and Regulations Board.
17 specialist groups. Each group has its owned board and is responsible for outlining standards of competence and best practice
- e.g valuation group, and commercial property group
RICS President
Nick Maclean has, temporarily, become Acting President of RICS. This follows the involvement of Justin Sullivan as an expert witness in High Court proceedings
RICS Chief Executive Officer
Justin Young
RICS main roles / purpose
- Regulate and promote the surveying profession
- Maintain the highest standards of education and training
- Protect clients and customers via strict regulation of professional standards
- To be the leading source of information and independent advice on land, property, construction and associated environmental issues.
Rules for RICS Registration 2022
If 50% of principals of a UK firm are RICS members then it has to be regulated, if 25% are RICS members then they can apply to be regulated.
Each firm must nominate a responsible principal
Complete an annual return on RICS website
Definition of Responsible Principal
Person obliged to ensure steps are taken and systems in place to ensure compliance with regulatory and RICS requirements.
AY’s is Usha De Sousa (head of compliance)
What are bye-laws
List of laws applied internally using powers granted by the royal charter.
What is the RICS Governing Council
Manages the royal charter obligations, setting direction and strategy
Establishes and RICS Board and the Standards and Regulations Board.
What is Lion Heart
Charity funded through RICS members
Provides support to past and present members and their families
Example of a bye-law
5.2.1 is regarding the registration of firms
Rules set out
- criteria for eligibility
- rules for registration
- obligations of registration
How many members are there
Over 130,000
4 levels of membership
FRICS
MRICS
AssocRICS
Trainee/student
4 fellowship characteristics needed for FRICS level?
1 CHAMPION
2 EXPERT
3 INFLUENCER
4 ROLE MODEL
Who is responsible for disciplinary procedures?
RICS is self regulating and is responsible for regulating surveying profession
Standards and Regulations Board undertakes this
How can disciplinary procedures be triggered?
Someone complaining to RICS
Allegation from a client or 3rd party
Information received or established by RICS
Levels of disciplinary action?
- Action by head of regulation
- Disciplinary panel (independent regulatory tribunal)
- Appeal panel
PII aims and requirements
Regulated Firms require PII in line with App A of ROC.
Aim is to protect clients from financial loss and firms from financial loss when facing a claim they may not be able to meet with own resources
100k turnover> 250k PII required
100-200k turnover , £500k PII
200k+ turnover, £1,000,000
Uninsured Excess
£10mill or less, greater of 2.5% of sum insured or £10k
10mill+ then it’s is uncapped
Run off Cover requirement
Required for a period of 6 years (12 years for a deed) after company ceases trading
£1,000,000 requirement for the period
