Ethics - KT Qs Flashcards
List the 5 New Rules of Conduct?
(“Chairman asks these questions at the end - answers should be quick and confident”)
1) Members & Firms must act with HONESTY, INTEGRITY and comply with their personal & professional obligations to RICS.
2) Maintain PROFESSIONAL COMPETENCE and ensure necessary expertise.
3) Must provide a GOOD-QUALITY and DILIGENT service.
4) Must treat others with RESPECT and encourage DIVERSITY & INCLUSION.
5) Must act in the PUBLIC INTEREST and maintain public confidence in the profession.
What are the 7 obligations for firms?
RICS regulated firms MUST:
1) Publish a RICS approved COMPLAINTS HANDLING PROCEDURE and maintain complaints log
2) Ensure adequate and appropriate PROFESSIONAL INDEMNITY INSURANCE
3) If a sole principal, make appropriate arrangements for their professional work to continue in the event of their incapacity/death (LOCUM AGREEMENT).
4) Firms must COOPERATE WITH RICS
5) Promptly provide all information reasonably requested by the STANDARDS & REGULATION BOARD
6) Display on thier business literature an RICS designation / LOGO KIT.
7) Report to RICS any MATTER they are required to report under the Rules for Registration.
Tell me about your firm’s gift policy?
If a gift is under £50 we are able to accept, as long as it is LOGGED on the firm’s GIFT REGISTER.
The gift register is regularly reviewed by the Compliance Officer.
We do not accept cash or events where the donor is not present.
If in doubt, company policy is to politely refuse.
Why is it necessary to have a policy on gifts?
To comply with the BRIBERY ACT (2010).
(To ensure transparency and protect against claims of bribery/corruption).
What is the definition of a bribe?
A GIFT or INCENTIVE which impairs professional judgement.
(or a service for an action which is illegal, unethical or a breach of trust).
What are the 4 offences under the Bribery Act (2010)?
Must not:
1) Give a bribe
2) Recieve a bribe
3) Bribe a foreign public official
4) Fail to prevent bribery
What are the principles of the Bribery Act (2010)?
- Proportionality
- Top-level commitment
- Risk Assessment
- Due Diligence
- Communication
- Monitoring & Review
A client is happy with some work you have done for them and invites you to their box at a local football match. Are you going to take up their offer? What would you tell them?
I would politely decline, as this is against my companies gift policy (value under £50).
However, I am aware the Bribery Act (2010) states that hospitality is not prohibited. It states that offering a client reasonable and proportionate hospitality will not constitute an offence such as tickets to a major sporting event, so long as this is accurtely recorded in the company gift register.
Why did you accept the bottle of wine in your Level 2 example?
Because the value was less than £50, I was able to accept as long as the gift was logged on the company GIFT REGISTER.
This is in accordance with my firm’s gift policy.
The law say if a gift is “REASONABLE and PROPORTIONATE” it will not consitute as an offence.
I had regard to the RICS ETHICAL DECISION TREE when determining my response (decision was informed with clear reasoning).
What is the Bribery Act (2010)?
The key legislation to consider for gifts and bribery - it aims to reduce bribery in commercial activity.
It is based on 6 principles and outlines 4 offences.
Firm’s must demonstrate they have taken steps to prevent bribery to include the identification of potential risks, staff training and regular review.
Once qualified, how much CPD will you be required to undertake?
20 hours year (at least 10 formal)
What is the difference between formal / informal CPD?
FORMAL = Structured learning where there are CLEAR LEARNING OBJECTIVES and outcomes (e.g. training course / seminar).
INFORMAL = Self-managed learning (e.g. private study / on-the-job training).
Why does RICS uphold standards for public advantage?
As per the ROYAL CHARTER (granted by Privvy Council in 1881).
This means that the organisation can work as a self-regulatory body and act in the PUBLIC INTEREST.
How is Disciplinary Action taken?
THREE levels of disciplinary action:
1) Head of Regulation
2) Disciplinary Panel
3) Appeal Panel
The first step is action by the HEAD OF REGULATION. For low-level breaches, they can serve a FIXED PENALTY NOTICE or a REGULATORY COMPLIANCE ORDER (written document between RICS and a member that they are LIABLE for disciplinary action).
For more serious cases, the matter can be referred to the DISCIPLINARY PANEL. They can Reprimand/Fine/Expulsion from membership.
APPEAL PANELS can consider a members appeal against review of a decision.
What are the core RICS guidance documents?
RICS has introduced two new document types: Professional Standards & Practice Information.
- Professional Statements & Guidance Notes are merging to form PROFESSIONAL STANDARDS. These are:
- MANDATORY requirements where the word ‘MUST’ is used.
- BEST PRACTICE where the word ‘SHOULD’ is used.
- PRACTICE INFORMATION documents are also being created.
- This is SUPPLEMENTARY guidance for members to follow. Guidance is NOT mandatory and does NOT provide explicit recommendations.
Can you give me an example of a new Professional Standard as of 2023?
RICS Professional Standard: Comparable Evidence in Real Estate Valuation (2023).
RICS Professional Standard: Code for Leasing Business Premises (2023).