Ethics Flashcards
Why was the RICS formed?
What is the aim of the RICS?
- To regulate and promote the profession
- To maintain the highest educational and professional standards
- To protect clients and consumers through a strict code of ethics
- To provide impartial advice, analysis and guidance
Why do you want to become an RICS member?
- Status - the qualification is prestigious and a personal achievement
- Recognition - It ensures I demonstrate the higher profesional and ethical standards and provides public confidence and drives demand for services.
- Market advantage - provide unrivalled confidence to the market and gain competitive advantage
- Knowledge - through CPD and best practice guidance, It allows me to develop expertise, enhance my skills and employability
- Network - It gives me the opportunity to build a global professional network.
I want to be part of a prestigious organisation which allows me to progress my career in an industry I am passionate about. It will give me the recognition and status to work with clients on a greater level.
Tell me about your company’s complaints handling procedure
There will be a specific compliance officer who will deal with complaints.
The complaint needs to be in writing to the compliance officer, who will contact the client within 7 working days to advise of the commencement of the investigation.
Within 20 working days of receiving the written complaint; the officer will respond to the client in writing advising of the outcome and the actions being taken.
What is involved in a complaints handling procedure
Firstly, there are specific requirements as per the RICS rules of conduct for firms in which a firm shall operate a complaint handling procedure and maintain a complaints log. The CHP must include an ADR mechanism.
An effective CHP should:
- be fit for purpose - reflect the size of the business
- be made available to all staff providing clarity and consistency
- be understood by all staff; through continued training
- readily be shared
- be regularly reviewed
- be agreed with PII broker
- provide details of redress if a form can not resolve the complaint
How should a complaint be dealt with?
- understand the complaint clearly and take it seriously
- do not admit fault but apologies that the client has felt the need to complain.
- raise with your supervisor
- Follow the CHP
- keep an audit trail
What is money laundering?
Using concealed month from unlawful activity and using it for ‘clean’ / lawful activity.
What act regulates money laundering?
The Money Laundering Regulations 2007
What are the money laundering regulations 2017?
The Money Laundering, Terrorist financing, and transfer of funds regulations 2017 which are used to prevent the laundering of illegally gained money into legitimate enterprise and to prevent the funding of terrorism.
What legislation controls bribery?
Bribery Act 2010
What does the bribery act regulate?
It is applicable to British citizens and those doing business in the U.K.
Under the act, it is a criminal offence for a person to directly or indirectly:
- offer, promise or give a bribe
- request, agree to receive or accept a bribe
What is a bribe?
An exchange or something of value in return for someone doing or agreeing to do something improper in a business context.
It is the giving offering and receiving of an advantage as a gift or service which is illegal or a breach of trust.
It is important to remember that an intention to bribery or be bribed is also an offence and therefore an offence could be committed even if nothing of value has changed hands or the activity has not been performed.
Something of value could be something with financial value such as money, a contract, a dinner, a holiday etc.
What are the fines for bribery?
Unlimited or 10 years imprisonment.
A company in which is tendering for a project you work on and offers to take you to a social event. Do you accept?
No, I would politely decline the offer. It would not be ethical to accept this and I would not want to been seen as giving anyone an unfair advantage.
It is also again RICS ethical behaviours as well as my companies.
A contractor has offered to take you for dinner. They are not currently rendering on any project with you. Do you accept?
No. I would politely decline.
I would not want my impartiality or judgement to be viewed differently in any circumstances.
If a contractor sent you a bottle of wine at Christmas would you accept?
Although in line with my companies procedure (is it reasonable and proportionate), I would still offer to send this gift back to the contractor as personally I would not want my judgement or impartiality to be viewed differently. As an alternative I would offer to put into a company raffle but be sure I followed company procedure in terms of recording on a gift register.
If a client offers you a gift, do you accept?
No. I would treat the situation the same as I would with a contractor and politely decline because I would not want my judgement or impartiality to be viewed differently.
If a client comes to you and asks you to reduce your fee what do you do?
I would explain that the fee is based on our scope of service and expertise and is unable to be reduced.
If the scope was to change I could look at this again and revise my fee based on the new scope of works.
What is the RICS black book?
The black book is a suite of guidance notes that define good technical standards for quantity surveying and construction professionals.
Tell me about a recent RICS article you have read.
In the April addition of Modus, I read an article relating to fire safety and the Grenfell disaster. This was about how high rise tower blocks were still yet to be inspected to understand the cladding materials (i.e. ACM - aluminium composite material which not only doesn’t resist fire, but also promotes it) and whether they complied with buildings regulations. It raised concern around whether we can assume that anything built in accordance with the building regulations is okay. It discussed how the RICS, the building societies association and the uk finance have agreed a new valuation process for homes in tower blocks that require a fire safety assessment of the external wall system who will complete an External Wall System form which has different options as to the type of cladding and whether remedial work is required. The article also discusses how the International Fire Safety Standards coalition aims to establish a global first in relation to fire safety with a set of common principles and fire safety framework that can be implemented worldwide and there are international standards which are due to be published later in 2020.
Tell me about a recent RICS article you have read.
In the April/ May edition of Journal, I read an article titled Value the Plant, which was about a new RICS campaign aiming to help the profession implement the UN’s sustainable development goals (relating to poverty, inequality, climate change and more) and preserve our planet for future generations. This article highlighted the next generation showing their passion and commitment to preserving the environment and how this relates to attracting talent to the industry. The article discussed the aim to cut greenhouse gases and carbon emissions to zero by 2050 and initiatives to support carbon reduction including the research paper, changing priorities in investor decision making: the sustainability agenda which looked into stakeholders willingness to pay for sustainability and building features that reduce carbon emissions and result in improved climate resilience. the Value the plant campaign provides resources such as a series of free webinars landing in 2020 to encourage our profession to implement the SDG as current awareness is low and aims to equip the profession to act more sustainably.
What is run off cover?
A form of professional indemnity insurance which covers the historic liabilities of a business after it ceases to trade. any claims made under the policy will relate to work carried out before trading stopped, so it covers legacy issues.
What are the thresholds for PI insurance?
firm’s turnover in the preceding year - minimum level of indemnity required for each and every claim
£100k or less turnover - £250k PI
£100,001 to £200k turnover - £500k PI
£200,001 and above - £1m PI
What is professional indemnity insurance?
Insurance to protect surveyors, clients and third parties against negligence claims when there is a duty of care breached and a claim for damage arises.
If in the aggregate - once the PI figure is exceeded in terms of claims against the company’s policy then nothing further is paid.
If for each and every claim - then you are providing PI cover for each claim made.
What professional development have you completed during your training period?
The RICS requires people to do -pre-qualification for 12 months of structured training and must undertaken 48 hours of continued professional development.
What would you do if a friend asks for advice on a house extension?
I would be expected to act in accordance withe the RICS rules and regulations regardless of who the work is for. Thing to consider here is PI cover and secondly I would need to make sure that any advice I provide goes through the necessary and relevant checks and balances prior to it being issued. I would likely advise that I can refer them to a professional surveyor who would be able to advise them under the firms terms and conditions. Even if this is out of hours and i’m not getting paid, this would still not change my approach.
What are the RICS principles of better regulation?
P - Proportionality A - Accountability C - Consistency T - Targeting T - Transparency
What are the Rules le Conduct for Members?
- E - Ethical Behaviours
- C - Competence
- S - Service
- CPD & Training
- S - Solvency
- I - Information to RICS
- C - Cooperation
What are the Rules of Conduct for Firms including firms administration?
- P - Professional behaviour
- C - Competence
- S - Service
- CPD & Training
- C - Complaints handling
- C - Clients money
- P - PII
- S - Solvency
- I - information to RICS
- C - Cooperation
- A - advertising
- D - Agreements to cover incapacity and death
- D - use of designations
What are the RICS core values / ethical behaviours?
- S - standard of service
- T - Trust in the profession
- I - act with Integrity
- R - take responsibility
- R - treat others with respect
What are the RICS requirements when starting your own practice?
- Inform RICS
- Register with the RICS regulatory board
- Appoint a contact officer
- RICS valuation registration scheme
- Complaints officer and log
- Clients money procedure
- PII
- Arrangements for succession
- Logo kit
- CPD log and training
What is required as regulation when starting a new business?
- Business Names Act 1985
- Equality Act 2010
- Financial services Act 2012
- Bribery Act 2010
- Money laundering Regulations 2007 - appoint MLRO
- Health and Safety Act 1974
- Control of asbestos regulations 2012
- Fire Safety Reform
- General Data Protection Regulations 2018
- Inform HMRC - vat threshold = £85k
What do you need to do when closing down a practice?
- Inform the RICS
- Inform clients
- Return clients money
- PII - 6 years run off cover - minimum £250k
- Retain clients files - 6 years
What are covered under CBRE’s terms of business?
- Fees and expenses
- Payment of invoices
- Complaints handling
- PI liability
- Money laundering regulations
- Data processing
- Legal disclaimer
What is the bribery act?
The bribery act 2010 is the act that modernises the law on bribery. It’s sets out the procedures to put in place to prevent bribery. Hospitality is not prohibited by the act.
What is the money laundering regulations?
The MLR 2007 states that a company must put in place anti-money laundering controls and monitoring. Every business must be supervised by an appropriate authority I.e HMRC
What does the RICS stand for?
The Royal Institution of Chartered Surveyors
How many members are in the RICS?
134,000 members
Who is the president of the RICS?
Timothy Neal
Kath Fontana - president elect
What is the RICS motto
There is measure in all things
When was the RICS formed/ founded?
1868
