Ethics - L3 Flashcards
How many different types of RICS document statuses are there ?
There are a number of document types. This includes (can be found within the first few pages of many RICS documents) :
• Rules of conduct for members and firms, updated Feb 2022
• International standards - High-level standard developed in collaboration with other relevant bodies
• RICS professional statements (PS) - Mandatory requirements for RICS members and regulated firms
• RICS guidance note (GN) - A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners
• RICS code of practice (CoP) - A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note
• RICS jurisdiction guide - This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally
What is the status of a RICS professional statement ? who does it apply to ?
Mandatory
RICS trainees, members, regulated firms
How does your behavior differ professionally and personally ?
My approach and behaviour does not change.
What information is required by the RICS for registration and in the annual return?
• Type of business and staffing details
• Statutory regulated activities - such as for financial services
• Nature of clients
• Complaints handling procedure and records
• Professional indemnity insurance certificate
• Whether the firm hold clients’ money
Why do you want to become chartered ?
• Gold standard in my profession
• Offers guidance and support from RICS
• Designation will help my career
• I am committed to lifelong learning
• I want to give back to the up and coming surveyors
What is the RICS ethical decision tree?
The RICS decision tree assists me in making informed decisions , confirming my actions are ethical and legal.
What are ethics?
Moral principles that govern an individuals behaviour.
What are the three types of due diligence?
• Simplified Due Diligence – Where you determine the business relationship is low risk of money laundering/terrorism
• Enhanced Due Diligence – for high risk customers and transactions with greater threat to financial sector
• New Customer Due Diligence – doing the checks to ensure your client is who they say they are.
What are the three benefits of regulation for firms?
CPS:
• Confidence - for client as regulated firms are monitored by RICS regulation
• Professionalism - firms have to provide clear, impartial and expert advice
• Security - firms have to have recognised CHP, access to ADR and PII cover
Why does you firm have Terms of Engagement? What should be included in Terms of Engagement?
Creates a contract with the client and clear definition of what is expected and on what terms etc.
Sets out the proposed fee basis, payment of expenses and that a copy of the firm’s complaints handling procedure is available upon request.
How would you close down a practice?
• Inform the RICS
• Inform clients and arrange for them to be handed over to a new firm
• Return any clients’ money
• Set-up professional indemnity run-off cover for a minimum of 6 years
• Retain a copy of client files and record for a minimum of 6 years
How long should files be kept for?
• A minimum of 6 years before disposing and destroying them securely (although can be sued for negligence for up to 15 years)
What do the new rules state about the use of the RICS logo and designation?
• Use of the RICS logo has been restricted to members and regulated firms only
• The ‘regulated by RICS’ designation must be displayed clearly to ensure visibility
• Prescribed text that must be included in the terms of engagement
• Companies are only allowed to use ‘chartered surveyor(s)’ designation in trading name and not company name
How would you limit the risk of working with a client or contractor who may be financially unstable ?
• Screening process:
• Dun & Bradstreet credit check
• Company search (Account information from Companies House)
• Internet search (Client website for additional information judgement on reliability)
If your client asked you to lower your fees because of their limited funding, what would you do ?
The client would have to pay the required price for the level of service required or reduce the scope of works involved. I could consider if the scope of work could be reduced however on the client request i would not just lower my fees.
How do you know you are competent ?
Having the knowledge and skills to undertake an instruction. If you have dealt with that type of property and location and you’ve carried out that task, you are deemed as competent. This can be defined as :
• Skills
• Knowledge
• Attitude
• Training
• Experience
If faced with a situation that you felt was unethical, how would you proceed?
Using the decision tree:
• Do I have sufficient facts?
• Is the matter legal?
• Is it in line with RICS Professional and Ethical Standards?
• Have I consulted with appropriate people?
• Do I have clear reasoning in reaching my decision?
• Would I be content for my actions to be made public?
If answered no to any of the above, I would not proceed with the situation alone and would consult senior staff with direction on how to proceed.
What are the CPD requirements?
• Qualified/MRICS member – 20 hrs per year, min 10 hours formal
• Student member – 48 hrs per year (Min 24 formal)
What is the difference between formal and informal training ?
Formal has a learning objectives and a defined learning outcome, i could reference the CPD decision tree for further guidance.
What is a complaints handling procedure?
A procedure to allow and define the procedure for clients to raise a complaints. This may include ADR and relevant timescales for the process.
What must a complaints handling procedure include ?
The procedure must include an Alternative dispute mechanism approved by the standard and regulation board. The procedure can be based on the RICS forms. Issued with terms of engagement, nominated person also details investigated within 28 days, record the complaints, advise PI insurers of complaint etc.
What options are available if you couldn’t resolve the complaint?
• Property Ombudsman
• RICS Dispute Resolution
• Escalation etc
Where would you find the RICS requirements for professional indemnity cover ?
• Professional indemnity insurance requirements
• Regulation Document
• Version 9 with effect from 1 April 2022