Ethics, conduct & Professionalism Flashcards
What is the role of the RICS?
Sets and enforces standards , regulates the profession and provides training and guidance. (Level 1)
What are the key functions of the RICS?
1) Setting professional standards 2) Regulating and accrediting professionals 3) Providing guidance and best practice 4) Dispute resolution services 5) Research and data analysis (Level 1)
What is a Royal Charter?
A formal document issued by the monarch granting legal recognition (allowing the body to operate as a legal entity), privileges and authority. Allows the organisation to set its own rules, regulations and professional standards. (Level 1)
Who is the current RICS President?
Justin Sullivan (Level 1)
What do you understand by the term self-regulation?
Where an organisation sets out and enforces its own standards, without direct government control i.e. laws. Which allows, for example, professional bodies to operate independently. (Level 1)
Can you tell me what you understand by the principles of better regulation?
These are principles that were developed by the ‘Better Regulation Task Force’ (BRTF) -
1) Proportionality
2) Accountability
3) Consistency
4) Transparency
5) Targeting
Set up in 1997 by the UK government to address concerns about excessive and inefficient regulation. (Level 1)
What is a bye-law?
A rule or regulation made by a local authority, corporation or professional body that applies within a specific jurisdiction or organisation. They are legally binding but must not contradict national laws. (Level 1)
Give an example of one of the RICS Bye-laws?
You must pay your fees each year (Contribution to funds) - You must demonstrate / pass the assessment of professional competence to become a member (Level 1)
Explain to me the new RICS Rules of Conduct - what do they replace?
New rules of conduct were introduced in 2022 which replaced the previous set. There were different rules for individuals and firms previously, now there is one set of rules for both. The rules were simplified and consolidated and ethics is integrated directly into the new rules. (Level 1)
When did the new RICS rules of conduct take effect?
2nd February 2022 (Level 1)
Who do the new RICS rules of conduct relate to?
Both members and firms. (Level 1)
What are the ethical principles that the RICS Rules of Conduct are based on?
1) Integrity - always act honestly and in the public interest
2) Competence - Maintain professional knowledge and skills
3) Service - Provide diligent, high quality service to clients and the public.
4) Respect - Treat others with respect and promote diversity and inclusion.
5) Responsibility - Be accountable for actions and follow professional obligations.
(Level 1)
What are the RICS five rules of conduct?
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.
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.
(Level 1)
Give an example behaviour for each of the RICS rules of conduct?
1) Integrity - Members and firms do not allow themselves to be influenced improperly by others.
2) Competence - Only take on work that they have the knowledge, experience and resources to carry out competently.
3) Service - Agree with clients the scope of service, its limitations and timescales in advance.
4) Respect - Respect the rights of others and treat others with coutesy.
5) Responsibility - Respond to complaints made against them promptly, openly and professionally.
(Level 1)
What are the core professional obligations of firms and members to the RICS?
Members:
1) Members must comply with the CPD requirements set by RICS
2) Members must cooperate with RICS
3) Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
Firms:
1) Firms must publish a complaints handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
2) 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 the RICS.
3) 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.
4) Firms must cooperate with RICS.
5) Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
6) Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by the RICS.
7) Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
What disciplinary procedures can the RICS impose?
Compliance orders - Fines - Practice Restrictions - Suspension - Expulsion - Publication of Sanctions
In what circumstances can these be imposed?
If a member breaches:
1) Rules of conduct
2) Bye-laws
3) Professional guidance
4) Commits misconduct or unethical behaviour
When did the RICS last update their disciplinary panel rules?
RICS last updated their Regulatory Tribunal Rules on 11 March 2024. These rules outline the procedures for disciplinary actions, appeals, and registrations concerning RICS members and regulated firms.
What are the different levels of action within these procedures?
1) Early engagement / informal resolution like advisory letter or practice monitoring / improvement plans
2) Regulatory compliance actions - compliance order / fixed penalty
3) Disciplinary panel hearings (RICS Regulatory tribunal)
What do you understand by the term professional practice?
Professional practice refers to the conduct, responsibilities, and standards expected of a person or firm operating within a regulated profession. In the context of RICS and the built environment, it means acting in accordance with:
- Ethical principles
- Technical competence
- Legal and regulatory requirements
- RICS rules and guidance
- Client and public expectations
What money laundering regulations or legislation are you aware of?
Proceeds of Crime Act 2002 - Defines money laundering offences & reporting obligations
Money Laundering Regulations 2017 (as amended) - Sets procedures for identification, due diligence, monitoring, and training
Terrorism Act 2000 - Covers terrorist financing offences and reporting
What is a red flag of money laundering?
- unusual client behaviour
- Complex or illogical transactions
- unusal payment methods
- Source of funds or wealth doesn’t add up
- high-risk jurisdictions or clients
What bribery legislation are you aware of?
Bribery Act 2010
What is a bribe?
In simple terms, a bribe is something of value given or received to gain an unfair advantage, often in business, public services, or professional settings.
