Ethics and RICS Flashcards by Shaun Haymer

What are Ethics?

Moral principles that govern a persons behaviour

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What are the old 5 ethical standards?

Integrity
Service
Trust
Respect
Responsibility

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What must you do when you set up a company?

PI
Register RICS regulation
Insurances
Complaints Handling Procedure
Handling Clients Money
Co-operate with RICS

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What registered firms submit to RICS annually?

Nature of business
PI details
Complaints handling procedure

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What insurances are there?

PI
Public Liability
Employer’s Liability
Buildings
Runoff - covers claims from companies that have ceased to trade [Merrit vs Bab]

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What happens when breach of rules/complaint?

RICS carry out formal investigation
RICS request information
Members must cooperate fully

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What are the outcomes of a breach?

Fixed Penalty
Consent Order - agree to comply with
Disciplinary Panel - caution/fine/expulsion

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What’s a Conflict of Interest?

A person in a trusted position who has a personal/professional interest which could make it difficult to act impartially

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What is a Locum?

A service provided on behalf of a sole practioner in case of capacity - step in/appointed chartered surveyor

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How do you become a Fellow?

5 years post qualification and prove you have made a significant contribution to the profession

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What’s APC stand for?

Assessment of Professional Competence

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What is Client’s Money?

Holding money on behalf of someone else

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RICS rules for handling client’s money?

Set up separate account and named
Provide client with Statement
Agreeing drawdowns with client
Sending clients statements prior to drawdowns

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Why hold client’s money?

Insolvency
Easier for client to manage finances
Death of sole practitioner

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What is ‘Client’s Money Protection Scheme’?

Run by RICS
Provides members of public reimbursement of direct loss
Goes through RICS insurance policy

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When founded?
Headquarters?
Motto?
Royal Charter?

1868
12 Great George Street
Est Modus in Rebus - There’s measure in everything
1881 - to maintain and promote usefulness of the profession for public advantage

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What is the organisational structure?

Privy Council
Governing Council
Management Board
Regulatory Board
Audit Committee
Finance Committee
Member Board

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Is there any legislation on slavery?

Anti-Slavery 2015

Provides punishments up to life imprisonment
Support to victims

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Can you name the President and others?

President - Tina Paillet
President Elect - Justin Sullivan
Senior Vice President - Nicholas Maclean
CEO - Justin Young

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Can you name any RICS Faculties?

Quantity Surveying
Building Surveying
Project Management
Dispute Resolution
Facilities Management

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What are the 3 market sectors?

Land
Property
Built Environment

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What are the principles of better regulation?

Proportionality - remedies appropriate to risk
Accountability - justify decisions
Consistency - standards implemented fairly
Targetting - focus on problem and minimise effects
Transparency - open and honest

What are obligations of firms?

7 altogether

PI
CHP
Handling Clients Money
Fully cooperate

What is limit of liability?

A cap on liability for a company

What's a Net Contribution Clause?

Consultants liability is only the loss they cause

What is PI Insurance?

Insurance to protect someone or organisation from an inadequate service

What are the PI levels?

0-100k = 250k 100-200k = 500k 200k+ = 1 million

What is Money Laundering?

Concealment of the origins of illegally obtained money

What is Bribery?

Bribery Act 2010 Someone in a certain position in breach of trust for a benefit

4 ways to breach Bribery Act?

Giving a bribe Accepting a bribe Failure to stop a bribe Bribing a public official

What are the penalties for Bribery Act?

Up to 10 years Unlimited fine

RICS Decision Tree?

6 steps Is it legal? Do I have sufficient information Happy going public

What is Bona Fide?

Genuine and in good faith. Declaring the absence of fraud or deception.

Why update to the Rules of Conduct?

5 key stages Simple structure Clear examples Sustainability Evolving Technology Respect and Diversity

The 7 Pillars?

Think ahead Leadership and inspiration Sustainbility Multidisciplinary and life long learning Networks and collaboration Technology Ethics Help shape the future of the profession

New Rules of Conduct?

Honesty and integrity Maintain professional competence Good quality/diligent service Respect Public interest - responsibiility

Honesty and Integrity example? How would you promote?

Highlight errors for all parties; valuation

Maintain Professional Competence? Example/promote?

Not undertake work without knowledge; design

Good Quality and Due Diligence? Example/promote?

Understanding client's needs before accepting work; time

Treat With Respect? Example/promote?

Don't discriminate

Responsibility? Example/promote?

Cost estimate to avoid affordable housing; planners respond openly to complaints

What's sensitivity analysis?

Finance modelling How variables affect another variable

Stop/defend bribery? (can make payments under duress)?

Proportionality Top Level Commitment Risk Assessment Due Diligence Communication Monitor and Review

Bribery Act - is a company liable?

Very senior Employee pays bribe Specifically for business

What must members do?

Comply CPD Co-operate Provide info Pay fees Uphold ethical standards

What is Unconscious Bias?

Associations we hold outside our conscious awareness Be aware/think logically with others

Equality within RICS?

Inclusive Employer quality mark - 2015 Response to moving towards a diverse future Based on 4 principles; leadership/recruitment/culture

Rules for firms?

CHP Cooperative with RICS PI Appropriate arrangements in case of death

Guidance on money laundering?

Countering Bribery and Corruption, Money Laundering and Terrorist Financing Not facilitate Training Report suspicious activity Verify client - basic checks

What is the RICS?

A globally recognised professional body - promotes and enforces the highest professional standards in the development and management of land, real estate, construction and infrastructure.

Requirements for a complaint handling procedure?

2 stage - second stage is 3rd party Advise to resolve or at least up date within 28 days

What are RICS Bye Laws?

Rules made by an authority/professional body Classes Eligibility

What if you don't have PI?

Can't provide advice RICS offer temporary cover 'Assigned Risk Pool'

Benefits of being a member?

Status Recognition Knowledge Network Market advantage Knowledge of standards