Ethics CSV file Flashcards
What are the 5 principles of better regulation ?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
(PACT)
What is the RICS motto ?
Est modus in rebus (there is measure in all things).
When was the RICS founded?
1868
How is the RICS Structured?
- The RICS was founded in 1868 with the Royal Charter being granted by the Privy Council in 1881.
- The RICS is self-regulated and internally monitored meaning that it is not regulated by the Government or external parties.
- The Bye-Laws determine how the RICS is regulated.- The Governing council manage and agree the strategy for the RICS.
- The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.
How can a disciplinary proceeding be triggered?
- Someone complaining to The RICS.
- An allegation by a client or third party.
- Information received or established by The RICS
What three actions can be imposed after the end of the
investigation stage?
- Fixed penalty.
- Consent order.
- Disciplinary panel.
What are fixed penalties?
A fine by the RICS
What are consent orders?
- It is a written agreement between the RICS and a member or firm concerning a disciplinary
issue on a breach of the RICS rules. - It can require the member to take certain corrective actions, or restrain them from taking
certain actions for a specified period of time and may require them to pay a fine or costs.
When is a disciplinary panel applicable?
- They are used for more serious breaches of conduct.
- The panel will usually be held in public.
- The burden of proof is on the RICS.
- A balance of probabilities approach will be adopted
What sort of breaches would expulsion be suitable for?
- Gross, persistent or willful failure to comply with an RICS rule of conduct.
- Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate
discrimination, misappropriation of a client’s money.
What procedures must you follow if you are starting up
a new practice?
- Contact the RICS for guidance and obtain a company start up pack.
- Inform the RICS and register for regulation.
- Appoint a contact officer for all RICS communication.
- Prepare a complaints handling procedure.
- Obtain Professional indemnity insurance cover.
- Abide by the Rules of Conduct for Firms.
- Use the designation ‘Regulated by RICS’ on all practice material
What insurances would you need if you were starting up
your own firm?
- Professional Indemnity Insurance.
- Employer’s Liability.
- Public Liability.
- Building’s insurance of an office premises.
What sort of information do registered firms have to
send to the RICS annually?
An annual return and carried out on-line.
- Failure to do so leads to a fixed penalty.
It includes:-
- Type of business and staffing.
- Nature of clients.
- Training provision.
- Complaints handling procedures details and records.
- PI insurance details.
- Whether the firm holds clients’ money.
What processes do regulated firms need to put in place
when handling Clients’ Money?
Preserve the security of clients’ money which does not belong wholly to the company.
RICS regulated firms that operate a client account must:-
- Set clear segregation of duties for employees.
- A Principal oversees the client money accounting functions.
- Principles cannot override controls.
- Competent and knowledgeable staff are to process clients’ money with cover
provided for long term absence.
- Accounting systems and data must be secure.
- Client money must be kept separate and clearly identifiable with the word ‘client’
included in the bank account name.
- Clients must always have access to funds.
- We must agree the terms and advise the client on bank details.
- The account must not be overdrawn.
- We must maintain client ledgers and provide a running balance.
What are the different types of client money accounts?
General accounts (holds money for more than 1 client)
Discrete accounts (single named client)
