Ethics/Mandatories Flashcards
When was the Royal INSTITUTION of Charted Surveyors (RICS) founded?
1868
How many members are there and what are the 4 levels of membership?
140,000
FRICS, MRICS, AssocRICS and Trainee/Student
How do you become a Fellow of the RICS?
You must provide evidence of four fellowship characteristics:
- Five or more years as MRICS
- Leadership role
- Professional/technical achievement
- Raising the profile of the RICS
Who is the current CEO and where would you find them today?
Justin Young (July 2023) and London
Who is the current President? Where would you find her today?
Tina Paillet RICS (1st January 2024) and Paris
What major challenges are currently facing the RICS?
Lack of young people coming into the industry
What are the 3 main roles of the RICS?
To maintain the highest standards of education and training
To protect consumers through strict regulation of professional standards
To be the leading source of information and independent advice on land, property, construction and associated environmental issues
What is The Birchard Review?
The Bichard Review was undertaken by Lord Birchard to clarify the purpose of RICS.
Including its:
- responsibility to act for the public advantage
- make recommendations on its governing structure to deliver that purpose
- provide proposals for the incoming leadership and governing body on the future culture and strategy of the Institution.
What are 5 benefits of being a RICS member?
Status
Recognition
Market Advantage
Knowledge
Network
How often must firms make a return to the RICS confirming their compliance with their obligations?
Annually
Can a practice be a partnership, an LLP or a sole practitioner?
Yes
Talk me through the RICS ‘Rules for the regulation of firms’ 2022:
A UK firm must be regulated if 50% of Principals are RICS members, if at least 25% are members then the firm can apply to be regulated
Each firm must nominate a ‘Responsible Principal’
Only RICs members and registered firms can use the RICS logo
When did the latest RICS Rules of Conduct come into effect?
2nd February 2022
What are the 5 Rules of Conduct?
Rule 1: Members and firms must be honest, act with integrity and comply with their personal obligations, including obligations to RICS
Rule 2: Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
Rule 3: Members and firms must provide good-quality and diligent service
Rule 4: Members and firms must treat others with respect and encourage diversity and inclusion
Rule 5: Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
What is the RICS Ethics Decision Tree? What is its purpose?
The RICS Ethics Decision Tree provides a framework of questions which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner or situation.
What are the three levels of disciplinary action?
Action by Head of Regulation
Disciplinary Panel (drawn from the independent Regulatory Tribunal)
Appeal Panel
What are the 4 disciplinary actions the Head of Regulation can give you?
Serve a Fixed Penalty Notice
Make a Regulatory Compliance Order
Refer the matter to a single member of the Regulatory Tribunal for consideration
Refer the matter directly to a Disciplinary Panel
What are RICS Professional Standards? What did they replace?
These are ‘set requirements or expectations for RICS members and regulated firms about how they provide services or the outcomes of their actions’
Include mandatory requirements, which use the word ‘must’ (which must be complied with)
Or recommend best practice, which uses the word ‘should’.
They replaced the Professional Statements and Guidance Notes
What is RICS Practice Information?
RICS Practice Information is information to support the practice, knowledge and performance of RICS members and regulated firms.
Publications can include good practice information, insights and processes.
They do not contain advice.
What are RICS Practice Alerts?
Key tools for warning or alerting the profession to emerging areas of risk over which the RICS has concerns.
Tell me about Fee Negotiations
- Firms should avoid price fixing, aggressive fee cutting or collusion with competitors
- Fees should be market-based and agreed on an ad-hoc basis with clients
- You should not be seen to be undercutting another firm
- Must be completely transparent with your clients and consumers
- The granting and acceptance of referral fees should also be considered in the context of the Bribery Act 2010 and the RICS Rules of Conduct 2021
What heading would you include in Terms of Engagement?
- Client name and address
- Surveyor(s) involved
- Scope of the job
- Fee scale
- Who is liable for fees
- Suspension and termination of instructions
- Liability and Indemnity
- Complaints handling procedure
- Anti money laundering
- Data Protection
- Suspension/termination of instruction
- Time frame for payment
- Confidentiality
Which Act allows for a 14 day cooling off period from the date of the agreement?
The Consumer Rights Act 2015
What are the 3 types of conflict of interest?
Party Conflict: Relating to work on the same or related instruction for two different parties
Own Interest Conflict: Relating to a personal interest
Confidential Information: Relating to work between two parties that is confidential
What is the difference between conflict avoidance and conflict management?
Conflict avoidance is when you do not accept the instruction whereas conflict management is when the instruction is accepted and steps are agreed and put in place to manage the conflict (such as an information barrier). This must involve a written agreement between all parties.
What is informed consent in regards of conflict of interests?
Written consent given by parties that are involved in a conflict of interest.
Should firms keep records of conflicts of interest?
Yes to maintain compliance with the Professional Standard.
What points must you cover when advising parties of a conflict?
- Disclose the nature of the conflict, circumstances and relevant facts
- Be clear and ensure both parties can make their own decision - advise them to seek independent advice if needed
- Request written confirmation from both clients of their informed consent
Tell me about a time you have managed a conflict of interest
I managed a conflict of interest when my firm was representing two neighbouring landowners who were applying to the same substation for BESS/solar projects. I wrote to both landowners advising of the situation and asking for their written consent to confirm they were happy to proceed if an information barrier was put in place within our office.
Which Professional Standard regulates RICS members on Conflicts of Interest?
RICS Global Professional Standard: Conflicts of Interest, 2017
What is meant by the term “Multiple Introductions”?
Where an agent has competing contractual relationships simultaneously with several buyers for commercial real estate investment opportunities
What is meant by the term “Incremental Advice”?
This is where an agent is approached by another party to provide advice related to a purchase or disposal that is incremental to an existing instruction
What is a Personal Interest/Own Interest Conflict?
When acting for a family member, a close business associate or someone with whom you have a financial or personal interest of benefit
Which Section of the Estate Agents Act 1979 regulates Own Interest Conflicts within agency work
Section 21
How long should old files be held for before disposal and destroyed securely?
A minimum of 6 years
In what case would you have to provide client files to a third party without the client’s permission?
A police or HMRC investigation
What rules must a firm’s complaints handling procedures meet?
RICS Rules of Conduct 2021
Who must a firm notify if there is a complaint made?
The firm’s PII insurers
What must firms include in their Complaints Handling Procedure?
An RICS approved Alternative Dispute Resolution (ADR) mechanism
Talk me through the first stage of the Complaints Handling Procedure
This is in house, the complaints handling officer (Charlotte Fairweather) must be contacted, complaint must be made in writing and the complaint must be acknowledged within 7 days and investigated within 28
Talk me through stage two of the Complaints Handling Procedure
Independent redress scheme become involved such as The Centre for Effective Dispute Resolution (CEDR), The Property Redress Scheme and the RICS Dispute Resolution Service
Who could a sole practitioner nominate as a Complaints Handling Officer
A surveyor in another firm
How many hours of CPD must a RICS member undertake each calendar year?
20, 10 to be formal and 10 can be informal
Why would the RICS become involved in a complaint
If a member fails to respond to the complainant or prevents the party gaining access to an independent redress mechanism
What else must RICS members keep up to date with other than CPD?
They must maintain a relevant and current understanding of RICS Rules of Conduct during a 3 year rolling period
How do members record their CPD? And what is the deadline?
Members record their CPD using the RICS CPD Management System on the RICS website.
The deadline is 31st January each year