Ethics

Question 1

What are the 3 main roles of the RICS?

Answer 1

1. To maintain the highest standards of education and training
2. To protect consumers and businesses through strict regulation of the profession
3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues.

Question 2

How do RICS regulate and promote best practice?

Answer 2

• RICS regulate is self-regulatory.

- PACTT.

Question 3

What are the 5 principles of better RICS regulation?

Answer 3

P.A.C.T.T
Following the Carsberg Report. Purpose: members/firms can use 5 principles to decide how best to meet requirements of Rules of Conduct.
1. PROPORTIONALITY – making the penalty proportional to the breach
2. ACCOUNTABILITY – to all members and the public
3. CONSISTENCY – treating all members the sam, level playing field
4. TARGETING – targeted to be relevant and useful, but not prescriptive
5. TRANSPARENCY – to all members, clients and the public

Question 4

What are the 5 ethical values of the RICS Professional and Ethical Standards 2015?

Answer 4

1. Act with integrity
2. Act in a way that promotes trust in the profession
3. Always provide a high standard of service
4. Take Responsibility
5. Treat others with respect

Question 5

What is the ethical decision tree?

Answer 5

It is a Yes/No flowchart that helps to determine whether to proceed when faced with an ethical grey area.
Starts with:
• Do you have sufficient facts?
• Is it legal?
• Is it in line with RICS global professional and ethical standards?

Question 6

What else is available to you when facing an ethical dilemma apart from ethical decision tree?

Answer 6

Detailed case studies on RICS website. RICS confidential hotline to discuss ethical issues

Question 7

Rules of conduct for Members?

Answer 7

7 Rules:
Ethical behaviour 
Competence 
Service
CPD
Solvency
Information to RICS
Co-operation

Question 8

Rules of conduct for Firms?

Answer 8

Part II - Conduct of Business (7 Rules)
Professional Behaviour 
Competence 
Service
Training and CPD
Complaints Handling 
Client's money
Indemnity 
Part III - Firm administration (6 Rules)
Advertising
Solvency
Incapacity or death of a sole practitioner
Use of Designation
Information to RICS
Co-operation

Question 9

What legislation relates to gifts and inducements?

What RICS guidance relates to gifts and inducements?

Answer 9

Bribery Act 2010
Proceeds of Crime Act 2002
Countering bribery and corruption, money laundering and terrorist financing, February 2019

Question 10

What is a bribe?

Answer 10

something given/promised in expectation of a change in behaviour.

Question 11

What is the Bribery Act 2010?

Answer 11

The Act aims to reduce bribery in business in the UK. New corporate criminal offence of failing to prevent bribery; a company will be responsible for employee corrupt acts if they cannot show adequate policies/procedures

Question 12

What is a conflict?

Answer 12

When a firm or individual’s impartiality is threatened due to a conflict of interest. Types of interest are financial, personal, commercial relationships, acting on both side of a transaction, acting for two clients on the same side of a transaction (i.e. submitting two bids)

Question 13

What guidance is there to deal with a conflict of interest?

Answer 13

UK and Global Professional Statements (Mandatory for Firms and Members).
- Conflicts of interest, 1st edition, March 2017 (became effective 1st Jan 2018)