Ethics & Morals

Question 1

Pick one of the new 5 rules of conduct and explain to the panel what you understand it to mean?

Answer 1

Rule Number 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including their obligations to the RICS.

1. It means that I should not mislead others with my actions or omissions and that I do not allow myself to be influenced improperly by others.

I remain open and transparent with clients.

Question 2

Can you give me an example of a recent scenario you’ve found yourself in relating to one of these 5 new rules?

Answer 2

Yes, we recently received a CV from a university graduate who undertook his studies in India and wanted to do some work experience with us.

Despite English not being his mother tongue and slight language barrier, I advised on allowing him to undertake work experience with us which related to rule number 4 - members and firms must treat others with respect and encourage diversity and inclusion

Question 3

Thinking about client satisfaction, what measures would you go to to check that a client is happy with your service?

Answer 3

My company undertakes client performance and client feedback audits.

I ensure that I contact my client and receive any feedback to tailor my service to provide the best service I can and areas which I can improve.

Question 4

And if you were in a situation whereby a client made a complaint about you. Can you talk me through the process you would go through to deal with it?

Answer 4

Our company, in line with the RICS complaints handling procedures guidance, follows a 2 step process.

The complaint would try to be resolved with a senior member within my team within 28 days.

Should this fail, the second step would allow the complainant to consult the RICS who would direct them to an independent redress scheme to resolve the matter.

We should notify our insurers if the complaint would give rise to any claim.

Question 5

There are four main offences under the Bribery Act 2010, can you tell me what they are?

Answer 5

1. Making a Bribe
2. Receiving a Bribe
3. Bribing a foreign public official
4. Corporate offence of failing to prevent bribery

Question 6

How would you deal with a situation where you suspected briber was taking place?

Question 7

Once you passed your APC, if you wanted to set up on your own, how would you know if you needed to register your firm with the RICS?

Answer 7

I would check with the RICS document Rules for the Registration of Firms.

Question 8

And you would also require PI insurance. So can you tell me first of all, what is PI insurance for?

Answer 8

Professionally Indemnity Insurance protects a firm from financial loss that it cannot meet from its own resources.

Question 9

And how would you know the level of indemnity you might require?

Answer 9

As per the RICS professional indemnity insurance requirements it’s based on turnover.

£100k or less is £250k minimum limit of indemnity
£100,001 to £200k is £500k mli
£200,001 or above is £1mil mli

Question 10

Are there any other types of insurance you might require for your new business?

Answer 10

1. Professional Indemnity
2. Employers Liability
3. Public Liability
4. Building insurance

Question 11

Can you talk me through some of the principals of prevention under the bribery act?

Answer 11

1. Proportionate procedures
2. Top level commitment
3. Risk Assessments
4. Due diligence
5. Communication
6. Monitoring and review

Question 12

What is the levitt report?

Answer 12

A report Commissioned by the RICS following a treasury management audit in 2018

Question 13

Can you explain the levitt report?

Answer 13

Prior to the audit, the RICS had to extend its overdraft facility by circa £3m due to inaccurate cash flow forecasting.

The report illuded to an internal power struggle due to its two board structure make up of management board and executive board

Question 14

What we’re some of the levitt reports conclusions?

Answer 14

1. Governing council to have more oversight of internal dealings
2. Governing council to be briefed by management board as opposed to a single ceo
3. Governing council are to oversee executive management bonuses
4. Greater transparency
5. No improper or illegal conduct was discovered

Question 15

Who are the main people in the RICS and their roles?

Answer 15

1. Richard Collins - interim ceo
2. Nick Maclean - acting chair of governing council
3. Isobel oregan - interim chair of management board
4. Clement Lau - president of RICS