Ethics and Rules of Conduct Flashcards
What are Rules 1,2 and 3
Rule of Conduct
October 2021
Effective from 2 February 2022
1 = Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS.
2 = Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise.
3 = Members and firms must provide good-quality and diligent service.
What are rules 4 and 5
Rule of Conduct
October 2021
Effective from 2 February 2022
4 = Members and firms must treat others with respect and encourage diversity and
inclusion.
5 = Members and firms must act in the public interest, take responsibility for their
actions and act to prevent harm and maintain public confidence in the profession.
what are the 3 RICS professional obligations for members
The following professional obligations to RICS are mandatory for RICS members.
- Members must comply with the CPD requirements set by RICS (10hours formal, 10-hours informal)
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and
Regulation Board, or those exercising delegated authority on its behalf.
what are the 7 RICS professional obligations for firms
- Firms must publish a complaints-handling procedure, which includes an alternative dispute
resolution provider approved by RICS, and maintain a complaints log. - Firms must ensure that all previous and current professional work is covered by adequate and
appropriate professional indemnity cover that meets the standards approved by RICS. - Firms with a sole principal must make appropriate arrangements for their professional work to
continue in the event of their incapacity, death, absence from or inability to work. - Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and
Regulation Board, or those exercising delegated authority on its behalf. - Firms must display on their business literature, in accordance with RICS’ published policy on
designations, a designation to denote that they are regulated by RICS. - Firms must report to RICS any matter that they are required to report under the Rules for the
Registration of Firms.
What level of PI cover does GTH have
£10,000,000
What is money laundering? What is your company procedure?
money laundering is when the proceeds of criminal activity are converted and realised as legitimate assets
company policy - carry out due diligence, or enhanced due diligence if red flags occur
What penalties are there from Bribery?
10-years in prison, unlimited fine
What is meant by reasonable and proportionate?
Proportionality: The action you take should
be proportionate to the risks you face and
to the size of your business. So you might
need to do more to prevent bribery if your
organisation is large, or if you are operating
in an overseas market where bribery is
known to be commonplace, compared to
what you might do if your organisation
is small, or is operating in markets where
bribery is not prevalent.
what is bribery
this is defined as giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward that person for having already done so.
what is PII and what are the bands for coverage?
£100,000 or less = £250,000
£100,000 to £200,000 = £500,000
£200,000 or more £1,000,000
what have the RICS recently bought out regarding PI
2023 RICS Approved Minimum Wording
The RICS minimum policy wording is broadly unchanged for 2023.
RICS has made some amendments to ensure clarity of drafting but none of these are material and there will be no impact on the breadth of cover available to RICS regulated firms in the UK.
There are no changes to the RICS UK PII requirements.
Chartered Surveying firms are being affected by a reduction in the supply of PII, significant increases in premiums and increased use of exclusions, particularly around exposures to fire safety. I believe that the lack of adequate, appropriate, and affordable PII availability is one of the biggest issues facing firms of Chartered Surveyors today.
what are the benefits of becoming an RICS Member
Status, recognition, market advantage, knowledge, network
what are the RICS requirements when setting up a registered firm
Inform RICS
Appoint Responsible Principle
Register for regulation
Arrange PII and send details to RICS
Set up how you will handle client’s money
Register for the RICS Valuer Registration System
Seek RICS approval for CHP
Set up a complaints log
Appoint Complaints Handling Officer
Obtain Logo kit
Ensure CPD is logged online
Set up a staff training plan
Complete RICS Annual Return at the end of each year
what are the requirements for closing a firm
inform RICS
inform clients and arrange handover of work to new firm
return any client money
inform insurers
arrange run-off cover (min 6-years)
retain copy of client’s files for 6-years
what is the RICS compliance for setting up a firm
Inform RICS
Appoint Responsible Principle
Register for regulation
Arrange PII and send details to RICS
Set up how you will handle client’s money
Register for the RICS Valuer Registration System
Seek RICS approval for CHP
Set up a complaints log
Appoint Complaints Handling Officer
Obtain Logo kit
Ensure CPD is logged online
Set up a staff training plan
Complete RICS Annual Return at the end of each year
what role does Michael Gove have
Secretary of state for levelling up, housing and communities and minster of intergovernmental relations
what do you need to include within an annual return to the RICS
Need to include the following in an annual return:
Type of business and staffing details
Statutory regulated services e.g. financial services
Nature of clients
CHP details and records
PII details
Whether the firm handle’s client’s money
Firms required to register
3.1 A Firm is required to register for regulation by RICS if:
a the Firm provides surveying services to the public
b the Firm is operating in Regulated Area A
c at least 50% of the Firm’s Principals are RICS Members.
3.2 RICS Members who are also Principals of a Firm that is required to register under Rule 3
must take all reasonable steps within their power to ensure that an appropriate application
to register for regulation by RICS is made on behalf of the Firm.
4 offences under the bribery act
receiving a bribe, giving a bribe, bribing a public foreign official and/or failing to prevent a bribe
what is the structure of the RICS
Royal Charter
Bye Laws
Regulation
Privy Council
Governing Council
Standards & Regulatory Board / Management Board / Audit Committee
Management Board comprises 17 professional groups.
3 main roles of the RICS
3 main roles:
Maintain high education and training standards
Protect consumers through regulations and standards.
Leading source of information and advice for the sector.
What is the RICS Ethical Decision Tree and list three things?
The decision tree provides a framework of questions that members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner.
Is it legal?
Is it in line with the RICS ethical standards?
Happy for it to be made public?
What are the minimum PII requirements?
Based on firm turnover:
Less than £100k = £250k min
£100,001 to £200k = £500k min
> £200,001 = £1,000,000
In relation to PII, what does retroactive mean?
The policy covers claims that are made within the insurance period, regardless of when the negligent act occurred.
What are the maximum levels of uninsured excess required by the RICS?
You can’t have much uninsured excess.
Limit of indemnity / Maximum uninsured excess
upto £500k = the greater of 2.5% of the sum insured or £10,000
more than£500k = 2.5% of sum insured
what is PII and what is it for
Professional Indemnity Insurance, to protect surveyors, clients and third parties against negligence claims when there is a duty of care breached for damages (negligence claim)
who is GTH’s data protection officer
Justin Lowe
what are the main methods of alternative dispute resolution
ADR - fall outside the court of litigation -
mediation (negotiation)
Arbitration (appoint arbitrator)
expert witness
