Ethics, Professionalism and Rules of Conduct Flashcards
What is the RICS?
The Royal institution of chartered surveyors, which promotes and enforces the highest professional standards in the development and management of land, real estate, construction, and infrastructure 
What is the royal charter?
The royal charter requires RICS to promote usefulness of the profession for the advantage of the UK public and other parts of the world
The Royal charter was awarded in 1881
Where are the RICS headquarters?
12 Great George Street, Parliament Square, London
Can you name some some of the RICS faculties?
Quantity surveying
Project management
Real estate
Building surveying
Dispute resolution
What is the RICS motto?
“Est modus en rebus” - there is measure in all things
What is Lionheart?
An independent charity ran by RICS professionals which includes services such as financial support, health and well-being packages, and free professional counselling
Why do you want to be a chartered surveyor? 
The RICS is the largest international property institution in the world and by joining, I will get global recognition, become part of a professional community, and receive an elite professional status
Why is professional membership important?
Build a global network of professionals
Enhances skills and employability
Demonstrates higher professional and ethical standards
Demonstrates competence in field of work
What is the RICS matrics?
The RICS matrics is a professional group to support new members entering the profession
The group works with the RCS to shape the future of surveying 
What is the RICS insight community? 
A platform on LinkedIn that provides the opportunity to connect, network and engage with other professionals
Why are professional RICS groups beneficial for surveyors?
Connect with other surveyors
Enables knowledge sharing
Can ask questions and delve on others’ experiences
What is the structure of the RICS?
Self governed (no more Privy Council)
Governing council - the highest governing body of the RCS that deals with entry requirements enforcing professional standards and ensuring the RICS fulfils its Royal charter obligations
RICS board - deals with membership services, nominations and renumeration, and audit, risk and finance
Standards and regulation board - deals with qualifications and assessments, and dispute resolution appointments
Who is the President of the RICS?
Tina Paylett, 2024
Can you give examples of how rule of conduct 1 is implemented?
Rule of conduct 1 - members and firms must be honest, act within integrity and comply with their professional obligations, including obligations to the RICS
Rule of conduct 1 can be demonstrated by:
Acting impartially
Identifying and dealing with conflicts of interest
Ensuring clients are informed by being open and transparent
Protecting confidential information
Not facilitating any financial crime, including money laundering, bribery or corruption
Can you give an example of how rule of conduct 2 is implemented?
Rule of conduct 2 - members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
Ways in which role of conduct 2 can be demonstrated are:
Only undertaking Work I am competent to do
Maintaining and developing knowledge and skills
Stay up-to-date with relevant legislation
Can you give an example of the rule of conduct of 3 is implemented?
Rule of conduct 3 - members and firms must provide good quality and diligent services
Rule of conduct 3 can be demonstrated by:
Understanding clients needs and objectives
Understanding client scope of services
Undertaking work in a timely manner
Ensuring proper records are kept of all advice
Can you give an example of how rule of conduct 4 is implemented?
Rule of conduct 4 - members and firms must treat others with respect and encourage diversity and inclusion
Rule of conduct 4 can be demonstrated by:
Treating everyone with fairness and respect
Creating inclusive cultures and environments
Reporting abusive labour and modern slavery
Can you give an example of how rule of conduct 5 can be implemented?
Rule of conduct 5 - members and firms must act in the public interest, take responsibility for their actions and prevent harm and maintain public confidence in the profession
Rule of conduct 5 can be demonstrated by:
Responding to complaints promptly, openly and professionally
Cooperate with investigations
Ensure not to undermine the RICS
Take responsibility for actions
Under the rules of conduct, what are the core professional obligations for members?
Members must:
Undertake the required CPD
Cooperate with the RICS
Promptly provide information as reason to be requested by the standards and regulation board
Under the rules of conduct, can you list the core professional obligations for firms?
Firms must:
Publish a complaint handling procedure
Ensure they have adequate and appropriate PI
Cooperate with the RICS
Ensure arrangements are made for firms with sole practitioners , ie Locums
How can you, as a charter surveyor, maintain a high ethical standard?
Maintain CPD
Follow advice given by the RICS on ethical behaviour
Report to any unethical behaviour
Review my own actions continuously
How can employers create an ethical environment?
Publish a whistleblowing policy for confidentiality
Include ethical evaluations in performance appraisals
Encourage staff to pursue chartership
Conduct CPD sessions surrounding ethics
Put necessary training in place
What is the difference between ethics and integrity?
Ethics are moral principles the govern a persons behaviour
Integrity is the quality of being honest and implementing such moral principles
Are you aware of any guidance for social media usage for chartered members?
I am aware of the social media guidance for members
This document details the standards expected of members and how they should prevent themselves professionally online
What are the various types of standards published by the RICS?
The RICS is currently currently undergoing a review of all their documents to categorise into professional standards and practice notes
I am aware that previously this was:
Professional statements (mandatory)
Guidance notes (not mandatory, but promotes best practice)
The APC (entry requirements)
Data standards (ensuring software can meet RICS standards for confidentiality)
What would happen if an RICS chartered surveyor didn’t comply with the professional standards and guidance?
If there was ever a professional negligence claim, the courts may query whether that charted member acted competently and followed the standards and guidance set out by the RICS
If this was not the case, the courts may decide that the works undertaken were professionally negligent
What is the RICS black book?
The RICS black book is a suite of guidance notes that defines good technical standards for quantity surveying and construction professionals
When are firms required to be regulated by the RICS?
If 50% of their principles are RICS charted
Are you aware of any guidance available to register as an RICS regulated firm?
Rules for the registration of firms is an RICS regulation that can be located on the website
When is a firm eligible to register for RICS regulation?
Firm is eligible when 25% or more of the principals are RICS chartered
If this criteria is not met, the RICS head of regulation could determine whether it is acceptable that a firm could be RICS regulated, if they believe that the firm would be suitably managed
What is a Locum?
A Locum is someone who is appointed to take over a sole practitioner should they be unable to work, for example, if they went on sabbatical or passed away
A Locum could be another MRICS surveyor, or someone qualified to do my role
How does PII cover relate to locums?
The locum would either be covered under the firms PII policy, or they could get their own cover
What are the RICS bye-laws?
A set of rules and regulations under which the RICS conducts itself
These can be located on the RICS website
Can you name some of the RICS bye-laws?
Bye-law 1 - application and definitions
Bye-law 2 - membership and registration
Bye-law 3 - designations (MRICS / FRICS)
Bye-law 4 - contributions to funds (payment for membership / subscriptions)
Bye-law 5 - conduct (liabilities of members and firms, and powers of the RICS)
Bye-law 6 - governing council, officers and staff (power of councils, duties of council)
Bye-law 7 - subordinate boards, committees, and groups
Bye-law 8 - procedure for general meetings
Bye-law 9 - accounts and audits
Bye-law 10 - general
What is the RICS CPD policy?
Members must undertake 20 hours of CPD per annum, with at least 10 hours being formal
Members must undertake CPD surrounding ethics every three years
As an APC candidate, I have been required to undertake 48 hours of CPD per annum, at least 50% should be formal CPD
Can you give some examples of formal CPD?
Professional training courses
Learning the includes an assessment measure
Seminars, webinars, lectures
Can you give an example of some informal CPD?
Private study
Private reading
On the job training
What kind of professional training have you done during your APC journey?
Building blocks program
Reading articles and policies
Mock interview
Question and answer hubs
What should you consider before accepting gifts and hospitality?
Timing of the gift - is a project in an important stage, for example during tender
Proportionality - how big or expensive is the gift? Could it be considered a bribe?
Impartiality - would accepting this gift affect my ability to act impartially?
Accepting this align with the RICS rules of conduct
Can you accept gifts from clients and contractors?
There will be circumstances where I can accept gifts from clients and contractors, but I would always ensure to consider the timing, proportionality, and my ability to act impartially, before accepting a gift
I would also always ensure to disclose any offered, declined or accepted gifts on my companies gifts and hospitality register
What is a gift register?
A gift register is a record of all gifts offered, declined and received from clients and contractors
The gift register is used for employees within the company
Can you describe a conflict of interest?
A conflict of interest is a risk that professional judgement could be hindered
What are the three types of conflict of interest?
Party conflict - where an existing relationship with another party as identified (for example, brother working for contractor)
Own Interest conflict - where works to be undertaken conflict with the interests of a member (for example, a large social housing development built behind my house)
Confidential information conflict - where you have to disclose information to one client that you need to keep confidential for another client
What is informed consent?
Where the party who might be affected by the conflict of interest acknowledges the existence and risk of the conflict of interest, and still agrees to proceed with works
In your company, how do you identify conflicts of interest before appointments?
Members of the firm are required to issue a conflict of interest check email to members of the company, to see if there would be any conflicts of interest
If a conflict of interest is identified, the client would be notified, in writing, about the detail of the conflict of interest, and whether or not they deem it significant to exclude us from the works
How would you deal with a conflict of interest that has been identified?
I would follow the Gleeds conflict of interest policy and the RICS professional standard for conflicts of interest
This would include emailing details of the conflict to the risk management team to review whether we are able to continue with an appointment
The risk management team deem acceptable to continue with an appointment, details of a conflict of interest would be emailed to the client outlining what the conflict is and ways in which the conflict would be dealt with internally, for example an information barrier
When might be inappropriate to be appointed on a project? When my informed consent not be sufficient?
If the works include due diligence where we have undertaken another role on the project
What is a bribe? 
A bribe is someone offering or providing a reward to gain commercial, contractual or personal advantage
What is the bribery act 2010?
The bribe react legally enforces the criminal activity associated with bribes
It covers four main principles, including:
Bribing someone
Receiving a bribe
Failure to prevent a bribe
What are the six key principles of the bribery act 2010?
P- Proportionality
C- communication (educating staff)
R- Risk Assessment
D- Due diligence
T- Top level commitment
M- Monitor & review potential for bribery offences
Who does the bribery act apply to?
Applies to British citizens, British associates with connection to the UK, and organisations that carry out business within the UK
How do you comply with the bribery act?
I adhere to the legislation which is echoed in my companies anti-bribery policy
My companies anti-bribery policy also includes those outlined in the RICS professional standard for countering bribery and corruption, money laundering and terrorist financing
What would happen if someone was found guilty under the bribery act?
They could face up to 10 years imprisonment and penalty of a fine
What is money laundering?
The process by which criminals conceal the origins of money associated with criminal activity
What does the RICS professional standard outline for suspected money laundering?
RICS members are legally obligated to submit suspicious activity to the national crime agency (NCA)
Are you aware of any legislation associated with money laundering?
I am aware of the money laundering regulations 2017 which set out the requirements for businesses to analyse their potential exposure for money laundering or terrorist financing
I am also aware of the proceeds of crime act 2002 which relates to the recovery and conversation of proceeds made from illegal activity
What would you do if the client insisted on paying you for works before you have completed them?
I would ask my client to pay the monies into a ring fenced bank account and agree a drawdown from that for payments for the works completed
What might make you suspect a client is money laundering?
Money could come from different sources and bank accounts
Money transferred from third parties
Large cash payments
What is corruption?
Corruption is the abuse of entrusted power for private gain
How can you help mitigate corruption?
Follow RICS professional standard
Follow Gleeds anti-corruption policy
Prevent, detect and report acts of corruption
What is a price fixing cartel?
A collection of independent businesses that fix the price of a good or service they provide, without competition from others
What is terrorist financing?
The solicitation, collection or provision of funds with the intention to support terrorist acts or organisations
What is a facilitation payment?
A payment made to a public or government official that acts as an incentive to complete some action or process
What is modern slavery?
Modern slavery is the illegal exploitation of people for personal or commercial gain
Is there any relevant legislation associated with modern slavery?
The modern slavery act 2015
This act makes it illegal requirement for organisations to address and report on modern slavery, and ensure all goods and services have been ethically sourced
Can you give me some examples of modern slavery?
Modern slavery may include:
Forced labour
Child slavery
Forced marriage
Human trafficking
What is professional indemnity insurance? What is its purpose?
Professional indemnity insurance covers the policyholder for the cost of legal action made against them in respect of financial loss due to negligence, error or omission of professional advice or services
Where can you obtain PI insurance?
Insurance can be obtained from an insurance provider in which the RICS have a list of approved providers on their website
Do you have to obtain your PI insurance through an RICS approved provider?
It does not have to be through an approved provider, but the RICS requires that regulated firms must obtain their PI from listed insurer that has a credit rating by either:
AM best, with a credit rating of at least B+
Standard and poor, with a credit rating of at least category BBB
What is the limit of indemnity for PI insurance?
The limit of indemnity is how much a business should be insured for
What informs the minimum limits of indemnity for PI insurance?
The firms turnover in the preceding year
Can you please tell me the minimum limits of indemnity?
Up to £100k = £250k LOI
£100,001 - £200k = £500k LOI
£200,001 + = £1m LOI
What is uninsured excess relation to PI insurance?
Uninsured access is the part of each claim that the firm pays themselves
What are the maximum levels of uninsured excess for regulated firms, in relation to PI insurance?
Up to and including £10m = 2.5% sum insured or £10,000 (the greater of the two)
Over £10m = no limit set
What informs the maximum level of uninsured excess for firms, in relation to PI insurance?
The firms turnover in the preceeding year
What are the key points the RICS professional standard outlines regarding PII?
PI insurance must be adequate and appropriate
PI insurance must cover all past and present employees
PI insurance must be fully retroactive 
What are the different types of policies for PI insurance?
Any one claim - entitled to full amount of policy for each claim
In the aggregate - cost of each claim is deducted from the policy total. For example, if a claim cost £100,000, and the policy was £250,000, the remaining value on the policy is £150,000
How can you avoid PII claims with your clients?
Keep record of all communications, meetings and advice
Follow RICS professional standards and practice notes
Don’t advise outside scope of competence
What is run-off cover?
Run-off cover is a form of PII which covers the business after they cease trading
How long should a run-off cover be in place for?
The RICS states run-off cover should be in place for a minimum of six years, but cover must be adequate and appropriate for each firm so it may need to be longer than this
What level of run-off cover should ensure provide for RICS regulated firms?
Run-off cover should be at least £1m in the aggregate policy for a period of six years, but the period may need to be longer to ensure it is adequate and appropriate for the firm
Run off cover must be a fully retroactive policy
Can you summarise the RICS complaint handling professional standard?
Understanding why clients complain
Understanding how to deal with a complaint and escalation
Highlights the importance of good record keeping, learning from experience and identifying training needs
Includes appendices for claim processes and PI insurance
How would you deal with a complaint?
I would follow my companies complaints handling procedure which includes:
Notifying the PI insurer as soon as possible of a potential claim
Notify the complaints handling manager
Contacting the complainant within seven days of their preliminary notice to inform them of my understanding
Issuing a copy of the companies complaints handling procedure to the complainant
Responding to the preliminary notification within 21 days to inform the complainant of the actions taken to rectify the issue
Ensuring I do not dissuade the complainant from escalating their complaint to ADR, the surveyors ombudsman (for public members only, not corporations), or RICS dispute handling, should they still be dissatisfied
How can complaints be avoided?
-Setting clear expectations in scope of services and appointment documents
-Regular communication with client
-Following up in writing for good housekeeping and records
-Following company and RICS policies for conflict avoidance
Why is calculating delayed damages not within your scope of competence? For CiNER Glass
I can’t provide a holistic overview of the potential loss for a client would suffer, as these records for potential cost incurred would be internal
What if a client came to you and gave you all the cost information to calculate delay damages and ask you to calculate them?
If they provided the numbers, I would calculate on that basis and ensure I reply to the client in writing that these delay damages are calculated based on the costs they have provided
Before undertaking this work, I would always seek advice from my employer and risk management team before calculating damages on behalf of a client
Can you give some examples of items that can be included within a delay damages calculation?
Loss of profits
Cost of professional fees
Rental of another premises
Storage costs
Are you aware of any reason of chartered member may be disciplined?
Serious professional incompetence
Failure to adhere to regulations and bylaws
Convicted criminal
Conduct liable to bring RICS into disrepute
What is the run-off pool, relating to run off cover?
Where company’s can obtain run off cover if they are unable to through the open market or their incumbent supplier
Who is the responsible principal?
The person responsible for upholding the RICS standards within a company
Who is the contact officer?
The everyday contact for a person, whereby the RICS can get in touch about a company
What are the professional obligations for members under the RICS Rules of Conduct, Appendix A?
- Members must comply with CPD regulations
- Members must cooperate with RICS
- Members must promptly provide all information requested by Standards & Regulations board
What are the professional obligations for firms under the RICS Rules of Conduct, Appendix A?
- Must publish CHP, including an ADR approved by RICS & maintain complaints log
- Ensure all previous & current work is covered by adequate and appropriate PI
- Firms with sole principal must ensure there are measures in place in the event of death, incapacity or sabbatical (Locum)
- Firms must have RiCS designation on their business literature
Who sets the RICS bye-laws?
- Byelaws are set by the Governing Council but they must be signed off by the Privy Council
If you were a new firm, how would you know how much your minimum LOI would be?
- I could forecast my anticipated turnover for the next year and obtain the appropriate LOI
What can you do if you can’t obtain PI insurance through the market?
- Obtain through the Assigned Risk Pool
- Open to all UK RICS regulated firms that are unable to obtain PII that meets the minimum requirements of the RICS
What basis can you have PI on? in the aggregate or each and every?
Each and every claim would always be a preferred option, but an aggregate plus unlimited ‘around the clock’ reinstatement can also be used.
Aggregate + = claims are deducted from the policy limit, but once the policy is exhausted, it must be reinstated to its full policy amount
Can you give me some examples of times you have followed the RICS Rules of Conduct?
- Rule Nr 1: I do not take unfair advantage of others; this is demonstrated regularly by ensuring I act impartially when assessing valuations
- Rule 2: I maintain my CPD and adhere to the RICS CPD policy
- Rule 3: I always ensure I keep proper records by providing all advice in writing to clients to ensure an audit trail is available
- Rule 4: I always treat others with respect and ensure everybody has the ability to speak when chairing meetings
- Rule 5: IF it were to arise, I would ensure all complaints were dealt with in a timely manner
What is Appendix A?
Sets out the professional obligations of members (Rule 1 - Professional Obligations including Obligations to RICS)
Who sets the RICS Byelaws?
The Governing Council, but the Privy Council must sign them off to agree to the change
How is omitting formwork for columns, ethical?
- It demonstrates compliance with Rule of Conduct 3 - Undertaking work, in a timely manner, with due care, skill and diligence.
Why was calculating delay damages not within your scope of competence, for CiNER Glass?
- The Client would hold all the relevant information required to calculate the delay damages holistically
- I would not have access to all these costs, so if I calculated the damages, it would not be reflective of the correct delay damages rate and therefore not a genuine pre-estimate of potential costs incurred should the project overrun
Other than delay damages, what else is not within your scope of expertise?
- Advice on VAT / taxes
Why did the Rules of Conduct get updated?
To provide a simpler, clearer structure to which members and firms must abide
How would you initially deal with a complaint?
Try and resolve with my client initially, and if cannot be resolved, resort to my company’s CHP
What may you exclude from an appointment document?
- VAT
- Services not included
- Travel expenses
