Ethics / professionailsm Flashcards
Talk me through the rics governance structure
Rics governed under under the terms of its royal charter, by various internal coucils and boards
Governing council has over 20 members and runs the rics, proving management and strategic direction
The standards and regulatory board and management board report to governing council
There are 17 specialist professional groups covering land, property and construction. Each professional group has an elected board and is responsible for outlining standards of competence and practice
Current CEO is Justin young
Current present is an gray, this position now chairs governing council
Name the Five Rules of Conduct?
- Members and Firms must act with honesty and integrity and comply to their professional obligation, including obligations to the RICS.
- Members and Firms must maintain their professional competency, and ensure that services are provided by competent individuals who have the necessary expertise.
- Members and firms must provide a good quality and diligent service.
- Members and Firms must treat others with respect and encourage diversity and inclusion.
- Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in their profession.
Can you provide examples of how you adhere to these rules of conduct?
- I am open and transparent with clients about their fees and ensure to include how they are calculated where appropriate and whether or not expenses are included.
- I only undertake work that I have the knowledge, skills and resources to complete competently. I stay up to date and comply with relevant legislation, codes of practice and other relevant technical and professional standards.
- I understand client needs and objectives before accepting any professional work. I agree with my clients the scope of services provided and its limitations and timescales for the work. I communicate clearly with clients and others in a way they can understand.
- I respect the rights of others and treat others with courtesy. I do not bully, victimize or harass anyone. I work cooperatively with others.
- I question practices and decisions that I suspect are not right and raise these questions with the appropriate person where I believe in good faith it is necessary to do so. I respond to complaints made about myself promptly, openly and professionally.
What is Appendix A? members
- RICS Members must; 1. Comply with the CPD requirements set by the RICS. 2. Cooperate with RICS 3. Promptly provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf. Publish a complaints handling procedure and have a third party dispute resolution service in place.
Why were the previous global professional and ethical standards and rules of conduct replaced?
The RICS developed new rules of conduct to introduce a simpler structure and provide clear examples of how members and firms can comply with each rule. There is also a renewed focus on respect, diversity and inclusion, understanding evolving technologies and tackling global issues such as tacking climate change.
What is the ethics decision tree?
- The RICS 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.
- It encourages considering the legality of ones actions and their consistency with the Rules of Conduct, as well as to consult with appropriate people and have clear reasoning before making decisions. The ultimate test is whether members would be content for their actions to be made public.
CPD in relation to the Rules of Conduct- How has this improved your understanding of the Rules of Conduct?
The RICS Ethics module explored multiple scenario based questions linked to ethics and the rules of conduct. This improved my understanding of the types of ethical queries I may face in the workplace and how to deal with these situations.
What are the 3 levels of disciplinary actions?
- Action by head of regulation
- Disciplinary Panel
- Appeal Panel
First stage of disciplinary action
Action by head of regulation
Formal investigation by the head of regulation of the rics
Head of regulation can then initiate one of following four actions upon completion on their investigation
The four possible actions ?
Fixed penalty notice
Make a regulatory compliance order
Refer to a single member of the regulatory tribunal for consideration
Refer matter straight to disciplinary panel
When might action from disciplinary panel come in?
More serious breaches of conduct
Head of regulation can consider that a hearing is required under the discipline rules
What penalties are available to the disciplinary panel ?
- Regulatory compliance order
- Fine
- Reprimand
- Impose conditions upon future continued rics registration
- Expulsion or remove firm
Appeal panel
Considerations when negotiating fees?
Avoid price fixing, aggressive fee cutting or collusion
Market based
Competitive but not under cutting
May wish to alter level of service with fee negotiations however still provide a high level of service
Must be transparent, state in terms if there is a referral fee
Acceptance of referral fees should be considered within the context of the bribery act 2010 and rules of conduct
Three steps of before carrying out work for a client?
Competency
Independence – conflict of interest
Confirm terms of engagement
What are terms of engagement
These state in writing the clients agreement to the proposed fee basis, payment of expenses and how they are calculated and that a copy of firms CHP is available on request
Why would you decline an instruction?
Not competent
Do not have sufficient facts
Client will not sign AML checks or terms of engagement
Conflict or personal conflict of interest
PI Cap not agreed
PI wont cover probono cases
Client is on uk government sactions list
If I was not happy that my actions on behalf of the client were made visible to the public eye
What would you consult if work would be considered a grey area?
Ethics decisions tree
Define conflict of interest?
A conflict arises when a members or firms impartiality is compromised due to the existence of a conflict between two parties these could be:
Any financial interest
A personal interest
Commercial relationship
Acting on both side of transaction
What is the difference between conflict avoidance and management
Avoidance do not accept instruction
Management you accept the instruction following the client giving informed consent and put ethical or informational barriers in place to mitigate
Key points of the RICS Global statement on conflict of interest 2017
Mandatory statement that came out in 2017
States that member of firms must not advise a client where doing so would involve a conflict of interest or a significant risk of conflict of interest other than the situation where all those parties that could be effected have given their informed consent
Informed consent may only be sought where an rics member is satified that proceeding despite the conflict is in the interest of all the conflicted parties or may be effected and is not prohibited by law
Its also defines three types of conflict
Party conflict
Own interest conflict
Confidential conflict
What are the three types of conflict ?
Party conflict - working on the same or related instruction for two parties
Own interest conflict – relates to personal interest
Confidential information conflict – relating to work between two parties which is confidential
What is informed consent?
Can only be given in writing
Can only be given if the affected party is completely informed by the all the material factors that creates a conflict have been explain transparently and fully
When should you seek informed consent ?
If there is a conflict of interest and you are satisfied that despite the conflict it is in the interest for all parties to carry out the work
How would you manage a conflict of interest ?
Step one conflict avoidance
Upon receipt of the fullt fact consider whether the conflict is irresolvable because your impartiality is compromised and should be avoided or whether it can be managed mitigated transparency and openness
Decide whether you want to act or client A or B
Step two Written advice to both parties
Assuming you wish to accept the instruction set out in writing as soon as possible to client a and b covering three point:
Disclose the nature of the conflict, the circumstances surrounding it and any other relevant facts and set out your proposals for how the firm intends to deal with the conflict, i.e setting up ethical or information barrier
Be clear as I possible can – ensure both parties can arrive at their own opinion and advise they seek advise
Request written confirmation that you can act on behalf of both parties with the suggest provision and procedure you have suggested you undertake (informed consent)
Step three – conflict management
Receive inform consent set up information barrier in accordance with the provision I suggested
Key consideration for an information barrier ?
Must be robust enough to prevent any information travelling between two parties
Take reasonable steps to operate the barrier
Sureyors on other side must be physically separated i.e. one work from home other in office (included support teams)
All information stored securely
Keep a clear audit trail of the conflict check process and all written and oral communication, compliance officer must oversee all actions.
How long would you hold client files for after being instructed?
6 years before disposal
What if you heard of a confidential piece of information regarding a party who is not their client?
This information cannot be used for their own purposes,
If by email then the client and sender should be advised of this error, and recorded to the compliance office.
When would allow a third party access to a client file ?
If the client gives consent
Unless you are subject to a statutory duty which overrides clients confidentiality (HMRC or police)
What is your firms CHP
My companies CHP policy
Person involved seeks to resolve immediately, if not then CHO is notified and standard letter is sent to complaint within 3 days
A principle in my firm is elected to launch an investigation in to the matter and conduct interviews audits and anything else pertinent to the complaint made
Update to client of this investigation within 10 days
If complaint still not happy then – CHO launches an investigation out come in 10 days
If complaint still not resolved then we will direct them to a redress scheme such as the PRS of CEDR
What if the complaint was not a client ?
We owe a duty of care to the client
Beyond that it is not definitive (case by case basis)
I then would contact my CHO
Who must be contact in the event of a complaint?
CHO
Always notify provides of our PI of any complaint as this could lead to a claim of negligence
How would you communicate with complaint ?
Ensure that all correspondence is headed with ‘With out predjuduce’
No mention of our PI or existence of cover
What are rics requirements for CHP
7 days acknowledge
28 instigate investigation
Procedure quick and clear when firm receives a complaint from a party that firm ows a duty of care to
Details of nominated CHO
Complaints made in writing
What if the complaint still isn’t happy ?
If the complaint is still not happy with the review:
The second stage of the CHP involces using an independent redress scheme that the firm has chosen to use
The name of the relevant redress mechanism must be provided to the complaint such as the centre for dispute resolution CEDR, the property redress scheme and the rics dispute resolution service
When would the rics get involved? regarding complaints
Only if a member fails to respond to the compliant or prevents the party from a gaining access to an independant mechanism
What if a sole practitioners ? regarding complaints
Nominate a surveyor in another firm to act as CHO
What are CPD requirements
20 hours
10 formal
Maintain understanding of rules of conduct during a 3 year period
All member to record cpd on cpd management system on the rics website by 31st January
CPD decision tree?
Focused topic
Formal structure – with learning outcomes
Objective enhance knowledge or skills
Interation with other, professors or professionals in a class toom like or conference setting ?
Yes all those then formal
