Ethics - Level 1 Flashcards
What are the benefits to clients of you being RIC regulated?
Confidence in quality
PII cover
Complaints handling procedures
What Rule of Conduct does Complaints Handling relate to?
Rule 5
What is Colliers complaints handling policy?
Stage 1: In House – details of CHP issued to complainant, quick procedure, details of the Complaints Handling Officer who will handle – aims for 2 days acknowledge
Stage 2: ADR – the property redress scheme and CEDR
What is the standard minimum procedure for handling a complaint?
Stage 1: In House – details of CHP issued to complainant, quick procedure, details of the Complaints Handling Officer who will handle, complaint made in writing and should be acknowledged within 7 days and investigated within 28 days
Stage 2: ADR; Third Party Resolution – if the complainant unhappy with review, second stage involves using an independent redress scheme with the name provided to the complainant e.g. CEDR (centre for dispute resolution)
What is the RICS redress scheme?
Used for complaints/disputes.
The RICS Scheme is designed to adjudicate disputes that have reached deadlock or where eight weeks have passed since the customer’s complaint was first raised. The RICS Scheme is administered and managed by the Centre for Effective Dispute Resolution (CEDR), an independent alternative dispute resolution provider.
How could a sole trader set up their CHP using a locum?
A sole practitioner may use a locum (another sole practitioner) as their complaints handling office to ensure that their CHP can be run fairly.
Tell me about how you would handle a client complaint?
If a client made a complaint, I would refer to my company’s complaints handling procedure.
I would refer them to the director dealing with the instruction.
If they wish to pursue the complaint, it must be made to the company in writing.
The director will acknowledge the complaint in writing within 2 business days.
They then investigate it providing a response in 15 days.
If the client disagrees, they can raise it with my firm’s compliance officer.
They then have 15 days to provide a response.
If still not satisfied, it can get to the approved ADR method – the Property Ombudsmen Scheme, the Centre for Dispute Resolution or RICS.
How is the RICS accountable for it’s members?
Provides a royal chartered contactable body to represent it’s members
Accountability is achieved through regulation of it’s members through: disciplinary action, quality standards and rules of conduct, and requirements in regard to things like PI.
What are the RICS 5 Rules of Conduct 2021?
Rule 1 – Integrity – members and firms must be honest, act with integrity.
Rule 2 – Competency – members and firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3 – Quality Service – members and firms must provide good quality and diligent service.
Rule 4 – Respect – members and firms must treat others with respect and encourage diversity and inclusion.
Rule 5 – Public Interest – members and firms must act in the public interest, take responsibility for their actions and maintain public confidence in the profession.
Can you tell me about some example behaviours associated with these rules?
Rule 1 – Do not mislead others, advise based on evidence, open and transparent over fees and services.
Rule 2 – Do not take on instructions above your knowledge, Not giving Building Surveying advice on Valuations, CPD and up to date knowledge.
Rule 3 – Understanding the Clients needs and objectives and meeting the timeline.
Rule 4 – Respecting others, do not bully, victimise or harass, working cooperatively with people
Rule 5 – Raising concerns about workplace behaviour and how you handle complaints from the public.
Can you give me an example of each Rule?
- Integrity = I didn’t change my valuation (didn’t allow myself to be influenced improperly)
- Competence = A Director asked that I take work on by myself which I said I would need his guidance on as wasn’t competent enough in the field.
- Quality/diligent service = When working on a client’s property portfolio, I ensured the client was constantly kept up to date, with progress and reasoning always explained, going the extra mile to ensure a quality service.
- Respect/diversity = When working on my firm’s Social Committee, I suggested doing events which catered for everyone.
- Public interest = When on an inspection I make sure I don’t affect the public and make sure I don’t point the distometer at anyone eyes.
What is the difference between Ethics and Rules of Conduct?
Ethics are a set moral values.
Rules of Conduct are a framework that we work to.
What was the reason for the new RoC (2022)?
RICS rationale for changes into a new rules of conduct (was code of conduct and ethical standards):
Simpler structure
Clear examples
Focusing on respect and D&I
Technology
Tackling global issues e.g. ESG
What process do you follow to make sure decisions are ethical?
I would adhere to the RICS Ethical Decision Tree – i.e. , do you have sufficient facts, is it legal, and is it in line with RICS Rules of Conduct? If no to any, then do not proceed.
How did you run a conflict-of-interest check?
- Identify parties involved
- Check on your system e.g. we use salesforce for any past or present instructions in relation to the party
- Do the same for the property
- Assess whether these give rise to a conflict and then inform the client
What are the 3 types of conflict?
- Party conflict = relating to work on same instruction for two different parties
- Own conflict = personal interest
- Confidential information = relating to work between parties that is confidential
What guidance would you have regard to and when was it mandatory from?
The RICS Professional Standard on Conflicts of Interest – mandatory from 1st January 2018.
What does the RICS global professional statement on Conflicts of Interest (2017) state?
Mandatory statement = must not undertake an instruction if doing so would involve a conflict of interest unless informed consent is given.
What conflicts of interest relate to agency work?
Section 21 of Estates Agents Act 1979 – declaration of conflicts required for estate agency work
Also consider AML, Bribery etc.
How did you use Salesforce?
I used salesforce to search for any previous links to the property and the client logged into the system.
What would you have done if there had been a conflict identified?
Where a conflict arises, follow 3 steps (conflict of interest 2017):
Conflict avoidance
Written advice (1. Disclose nature, 2. Be clear, 3. Request written permission)
Conflict management – e.g. information barrier
Why are conflict checks important?
Ensure impartiality and integrity as per Rules of Conduct (2022).
Ensure accurate work is undertaken that isn’t influenced by external factors – this has various knock on effects e.g. an incorrect valuation that has come out due to the bias of the valuer may impact whether or not the firm can be sued – conflicts noticed but not addressed could void PI cover etc.
What RoC do conflict checks relate to?
Rule 1 of the Rules of Conduct - Integrity
Arguably Rule 3 - Quality & diligent service and Rule 5 - public interest
Have you had an experience of a Conflict of Interest and how you managed it?
I was involved in acquiring an office in EC3 for a client and one of the properties the client shortlisted was represented by my colleague representing the landlord as a leasing agent.
I maintained transparency with the client and informed them about the conflict.
I recommended that the joint disposal agent conduct the viewing.
If there were a sole agency, I would request written consent from both the Tenant and the Landlord. After consent, I would propose setting up information barriers with no sharing of sensitive information between teams.
