Ethics - Level 3 Flashcards
What is the role of the RICS?
•Accredits professionals in the Industry
•Set, maintain, and regulate standards within the industry
•Provides advice to government and policy makers
What are the 5 principles of RICS Regulations?
PACTT
1) Proportionality - Solutions to non compliance should be proportional to the misdemeanour
2) Accountability - RICS regulators must be able to justify their decisions
3) Consistency - Rules should be implemented fairly and consistently by regulators
4) Targeted - RICS regulators should focus on key problems
5) Transparency - RICS regulators should clearly define and communicate regulations to members
How does the RICS maintain professional standards?
• By the 5 rules of conduct
• Updated and became effective in January 2022
What are the rules of conduct for RICS members?
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1) Members must be HONEST, ACT WITH INTEGRITY, and comply with professional obligations
2) Members must maintain PROFESSIONAL COMPETENCE, and ensure that services are provided by competent individuals with relevant experience
3) Members 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 and take responsibility for their actions
Why does the RICS have rules of conduct?
It sets the standards of professional conduct and practice expected of members and firms registered under the RICS
What happens if a member contravenes the rules of conduct?
•Penalties (e.g Cautions, Fine, Removal of Registration, Expulsion)
What are professional statement documents?
•Mandatory requirements for RICS members and firms
•Set out behavioural, competence and technical expectations
What examples of professional statements are you aware of?
•Client Money Handling (2019)
•Conflict of Interest (2017)
•Countering Bribery and Corruption, Money Laundering, and Terrorist Financing (2019)
•Complains Handling (2016)
What are RICS Guidance Notes?
• Documents that provide RECOMMENDATIONS our outline good practice
What examples of guidance notes are you aware of?
•Management of Risk (2016) - provides risk identification and quantification techniques
•Design and Specification (2013) - provides guidance on understanding project briefs, managing design information and documents, identifying methods of change control
What is the difference between a professional statement and a guidance note?
•Professional statements are MANDATORY for all RICS members and firms
•Guidance noted and RECOMMENDATIONS for good practice
What is the biggest issue facing the RICS at the moment?
•Diversity - Gender and Race inclusion
•Access to the industry for people from all walks of life / backgrounds
•Levitt Review 2021
What is your company’s gift policy?
•Business Development Director approval is required for entertaining business contacts over the value of £100
•Approval required for being entertained over £50 and from the MD if over £1,000
•Offering or accepting gifts from the government is prohibited
•Christmas gifts are shared with the rest of the company
•If in doubt, do not accept
What is the RICS Gift Policy?
•Covered in the Countering Bribery, Corruption, Money Laundering, and Terrorist Financing Professional Statement
•RICS regulated firms must have a written policy on anti-bribery and corruption, and encourage transparency by implementing a register
•RICS members must declare gifted items to their employers
Who is the CEO of the RICS
Justin Young
What is the structure of the RICS?
Governing Council sits above both the 1) RICS Board and the 2) Standards and Regulation Board
What is the Royal Charter?
•Means that the RICS has a seat on the privy council to advise the Crown
•Requires members to promote the profession for the public benefit
How many members does the RICS have?
•140k members globally
•10k firms globally
How do you become a member of the RICS?
•Demonstrate professional knowledge and skills
•Understand and commit to the RICS ethical standards
What is Ethics?
•Study of moral standards and how they impact conduct
What are the four levels of membership for the RICS?
•FRICS - Fellow
•MRICS - Member
•AssocRICS - Associate
•Trainee
Why do you want to be a member of the RICS?
•Be part of an institution that promotes the highest standards and ethics within the industry
•Recognised as a professional
•Broaden my network and CPD opportunities
What is the CPD policy for members?
•48 hours per year for APC candidates
•20 hours minimum recorded online per year
•10 hours must be formal, with clear learning outcomes and recorded online
•Each member must update their understanding of professional and ethical standards every three years
What professional group boards are there within the RICS?
There are 18 professional group boards covering specific technical segments / services
• These offer networking, market insights and technical guidance
•E.g. Project Management Group / Dispute Resolution Group
What are the three obligations for RICS members?
1) Comply with RICS CPD requirements
2) Cooperate with the RICS
3) Provide information if requested by regulation boards
What are the seven obligations for RICS-regulated firms?
1) Publish COMPLAINTS HANDLING PROCEDURE
2) Ensure all work is covered by adequate PROFESSIONAL INDEMNITY COVER that meets RICS approved standards
3) Firms with a SOLE PRINCIPAL must make arrangements for their professional work to continue in the event of their incapacity to work
4) Must COOPERATE with the RICS
5) PROVIDE INFORMATION requested by the Standards and Regulation Board
6) Display in their business literature they are regulated by RICS
7) Report to the RICS any matters they are required to report under the Rules for the Registration of Firms
What are the requirements of firms to be RICS registered?
•Adequate professional indemnity cover
•Have a Complaints Handling Procedure
•Security of Client’s money
•Comply with Employment Legislation
•Training Programme for Employees
•Individual RICS professionals must carry out CPD
When does a firm become eligible to be RICS registered?
• If they are providing surveying services to the Public
• At least 25% of the Firms Principals are RICS members
When is it mandatory for a firm to be RICS registered?
•If the firm provides surveying services to the Public
•If the firm operates in regulated area a
•At least 50% of the firms principals are RICS members
How does the RICS monitor firms?
•Annual returns
•Client accounts
•Correspondence
•Regulation board ensures members follow the rules
What are the benefits of being regulated by the RICS?
•Reputation-ally beneficial
•Practice globally recognised standards
It also recognises that your firm / you:
1) Behaves ethically and acting with integrity / honesty
2) Has the required competencies to do the job
3) Manages conflict transparently
4) Safeguards the security of clients money
5) Manages finances appropriately
6) Provides adequate and appropriate indemnity for works
7)Handles complaints and disputes fairly
What is the RICS Complaints Handling Procedure?
•A firm must have a CHP
•It must include a redress system
•Firms must have a CH Officer and a CH Log
•CHP must be free of charge
•Sole traders can’t deal with complaints themselves
•Employees should understand your own CHP and know the process for dealing with complains
•Time limit = 1) Acknowledge within 7 days 2) Substantive reply within a further 21 days 3) Second stage redress if the client is dissatisfied
What is your company’s CHP?
•Inform line manager
•Acknowledge complaint within 5 days
•Formally respond within 14-18 days
•Formally record and investigate
•Internal lessons learnt to be held after
What are the Principles of UK Law?
1) Statutory Legislation - Act of Parliament, Regulation, Bylaws
2) Common Law - Derived from previous judicial decisions of courts rather than written legislation
3) Criminal Law - Crown Prosecution for offences against society
4) Civil Law - Offences against an individual or other private party
5) Case Law - Relevant cases used to help a court make a judicial decision
What examples of legislation are you aware of?
•Health and Safety at Work Act 1974
•Equality Act 2010
•Bribery Act 2010
•Data Protection Act 2018
What is Professional Indemnity Insurance?
•An insurance policy that protects you against claims for loss or damage made by third parties as a result of the impact of negligent services you provided or negligent advice offered
•Mandatory for Surveyors working practice
What level of PI do firms need to hold?
•Up to 100k turnover - £250k
•£100k - 199k - £500k
•£200k - £1m
What would you do if a Client gave you a bag of cash?
•Undertake due diligence - enquire where it came from
•You can accept but you must register it with HMRC to ensure you are paying VAT, however only up to the value of £10k
•Take advice from a senior
•Consider the Bribery Act 2010
What do you need to do if you set up a practice tomorrow?
•Notify the RICS
•Register to be regulated as a firm
•Obtain required insurances (PI, Public Liability)
•Meet the requirement of the Rules of Conduct for Firms, including 1) H&S Policy 2) Equal Opportunity 3) CHP
•Register on Companies House
Is it appropriate to give advice to a friend?
•Not unless they are paying you for your professional services
•Instead give names of other companies
•Ensure I am working within my competence
What is the Management of Risk Guidance Note?
•Brought in in 2016
•Provides recommendations on risk identification and quantification techniques
What is the Stakeholder Management Guidance Note?
•provides guidance on how to approach stakeholder engagement, including planning strategies, relationship development, communication and early consultation
What is the RICS policy on H&S?
•Captured in the Surveying Safely Guidance Note
•RICS regulated firms must ensure they provide a 1) Safe Working environment 2) Safe working equipment 3) Safe systems of work 4) Competent Staff
• 2019 version provided a new safe person concept - each individual assumes personal responsibility for themselves and those around them
What is the Client Money Handling Professional Standard?
•Professional standard ensures three things:
1) Client Money is kept safe
2) Client Money accounts are used for appropriate purposes only
3) Firms have the right controls / procedures in place
It requires RICS firms to:
•Hold Client money in a seperate account
•Registered with the RICS Client Money Protection Scheme
•Up to date records are kept
•Must be immediately available
What is the Conflict of Interest Professional Standard?
•Defines a conflict of interest as a situation when the duty owed to a client conflicts with the duty to another client in relation to the same professional assignment
•All conflicts of interest must be recorded
What guidance does the RICS have on handling corruption?
•RICS Professional Standard on Countering Bribery and Corruption, Money Laundering and Terrorist Financing (2019)
•Members must not accept anything that could constitute a bribe
•Members / firms must report any activity they are aware of which breaches anti-bribery
