Ethics - Other Flashcards
What tool can be used to help make ethical decisions?
Ethical Decision Tree
What questions are asked in the ethical decision tree?
Sufficient facts?
Legal?
Aligned to rules of conduct?
Clear reasoning?
Happy for decision to be made public?
When is a firm rquired to register for regulation?
50% of principles are RICS members
Operating in Regulated Area A (UK)
Surveying to the public
When are firms eligible to register for RICS for regulation?
25% of priniples are RICS members
Surveying to the public
or if RICS are satisfied there is an appropriate plan to secure compliance with above in set time
or if RICS are satisfied with approproate support and supervision from RICS accredited firm
What is a locum?
Sole principle who stands in when surveyor is unable to work
Who can be a locum?
Typically another Chartered Surveyor
Can be solicitor / accountant (trusted professional)
How is PI covered for locums?
Need to be covered - can be their own or under the firm
What is your firm’s policy on gift giving?
Can gift up to £250 and receive up to £100
Must be logged in firm gift register
What are the requirements for CPD?
Minimum of 20 hours a year for members
50% must be formal
Must be recoreded by 31st January
What is the difference between formal and informal CPD?
Formal - set learning outcomes
Informal - self-managed learning
What RICS tool is there for deciding if CPD is formal or informal?
CPD Decision Tree
Focus within your role or profession?
Structured?
Outcome based assessment?
Interactions with others?
What is a conflict of interest?
A situation where is a risk that professional judgement is compromised
What are the three types of conflict of interest?
Own - personal conflict (working for a friend/family)
Party - representing two associated parties (G&T working for tenant and landlord)
Confidential Information - information not to be shared
What is informed consent?
Signed document where both parties acknowledge the risks of conflict of interest
What is a bribe?
Reward offered, promised or provided to make commercial, contractual or personal gain
What is legislation for bribery in the UK?
Bribery Act 2010
What are the 4 offences under the Bribery Act?
- Making a bribe
- Receiving a bribe
- Failure to prevent bribes
- Bribing a foreign public official
What are the 6 principles under the Bribery Act?
- Proportionality
- Top Level Committment
- Risk Assessment
- Due Diligence
- Communication (training)
- Review and Monitoring
Who does the Bribery Act apply to?
Any British citizen (inside or outside the UK)
British associate with connection to the UK
Any British organisation if operating outside the UK
Who do you report bribes to?
National Crime Agency
What are consequences of not adhering to the Bribery Act?
Unlimited fines
Jail sentence up to 10 years
What is money laundering?
Process of illegally concealing the origin of money
How do you report money laundering?
Submit suspicious activity report (SAR) to National Crime Agency
What is corruption?
Abuse of power for private gain
What is a price fixing cartel?
Group of business who act as a single producer fixing the price of goods
What is terrorist financing?
Collection of funds with the intention to support terrorist acts or organisation
What is a facilitation payment?
Payment made to a public/government official to act as incentive to complete an action or payment
What RICS document refers to bribery, corruption, money laundering and terrorist financing?
Professional Standard February 2019
What is modern slavery?
Illegal exploitation of people for personal or commercial gain
What is the relevant legislation for modern slavery?
Modern Slavery Act 2015
What are some examples of modern slavery?
Child Labour
Forced Marriages
Human Trafficking
How do you report modern slavery?
Call modern slavery helpline or the police
What is PI Insurance?
Personal Indemnity Insurance
Protects businesses from financial loss due to claims arising from negligence or breach of professional duty
What RICS publication provides information on PI requirements?
UK PI Insurance requirements - July 2024
What is the purpose of having PI Insurance?
Ensures firms are financially protected when claims arise
Protects the member or firm against consequences of liability
Ensures Client does not suffere financial loss when a firm cannot meet
What is the difference between ‘any one claim’ and ‘aggregate’ policies?
Any one claim - coveres full limit for each claim made in the period of insurance
Aggregate - provides full limit of cover for all claims made within the period of insurance
What is a fully retroactive PI policy?
Retroactive policy which allows claims to be made for a cerain period before period of insurance
If none, policy is fully retroactive
What is the RICS minimum wording for PI retroactive cover?
Retroactive date to be 1st July 2024 or later for Fire Safety Claims
What measures do you take to avoid PI insurance claims?
Keep records of meetings / conversations
Record advice given
Follow RICS Rules of Conduct
Avoid exccessive workloads
Use proper scope of service documents
Why is Merrett v Babb (2001) important for PI?
Babb completed a valuation which was found negligent.
Firm and PI cover had been cancelled
Court ruled that Merrett could pursue Babb, as an individual, for losses
If an employee’s firm PI insurance becomes invalid, the employee could be held personally liable for damages caused by their negligence
What are the minimum limits of indemnity?
Turnover less than £100k = £250k
Turnover between £100k and £200k = £500k
Turnover above £200k = £1m
What is the maximum level of uninsured excess?
Limit of indemnity less than £10m = uninsured excess 2.5% of sum insured or £10k (whichever is greater)
Limit of indemnity over £10m = no set limit
If you have made a mistake, what should you do?
- Notifty PI insurance company
- Comply with conditions / procedures set out in the policy
- Advice Client of the error
- Assess level of mistakes and rectification methods
What is run-off cover?
PI Insurance which covers the historic liabilities of a business after it closes
How long should run-off cover be in place?
Maintained for a minimum of seix years
Depends how contract is signed
