Ethics, rules of conduct Flashcards
When was RICS founded
1868
When did they gain the royal charter and from who?
privy council in 1881
Governance of the RICS
councils, boards, associations.
Governing council at the top. then standards and regulation board then RICS board underneath.
What was the review in 2021
levitt review - states we need clarity, purpose, strategy and governance restructuring.
3 main roles of the RICS`
maintain high standards
protect consumers
leading source of info
What is the bichard review and date?
lord bichard appointed in 2022 to do a review of the RICS and come up with 7 key recommendations.
what are some of bichards reccomendations
increase diversity and inclusion
increase focus on public interest
undertake a review every 5 years
new, simplified, clear, accountable structure.
5 benefits to being an RICS surveyor
knowledge
status
recognition
market adv
network
3 benefits of regulation of a firm
confidence
professionalism
security
Requirements for registering an RICS firm
50% of principles provide service - you must register
25% can register
must have a responsible principle
must provide an annual return
PI certificate
CHP
types of clients
clients money handling
types of business
RICS rules of conduct
integrity, professionalism, and obligations
competence
good service
diversity and inclusion
act in public interest, responsibility and prevent harm
Firms professional obligations to RICS
publish CHP
SHow PII certificate
cooperate with the RICS
provide info to the RICS if requested
Surveyors professional oligations to the RICS
comply with CPD requirements
cooperate with the RICS
provide info to the rics if requested
reasons for new rules of conduct
simple structure
clear examples with 12 case studies
focus on respect, diversity and inclusion
understand evolving technology
tackling global challenges
ethics decision tree, what is it for?
gives surveyors support on considering the legality of ones actions.
Who regulates the RICS surveyors
Standards and regulatory board
What are the 3 levels of disciplinary action on surveyors?
action by head of regulation
Diciplinary panel
appeal panel
Head of regulation carries out formal investigation, what are the four actions he can take?
serve a fixed penalty notice
make a regulatory compliance order
refer matter to regulatory tribunal
refer matter straight to diciplinary panel
what can the regulatory diciplinary tribunal panel do?
issue a regulatory compliance order
reprimand
fine
expulsion from the profession
How do you negotiate a fee?
avoid price fixing
no collusion of firms
do not under cut the market
be transparent with clients
What are the 3 steps to TOE
check competence
carry out COI
agree TOE
When can an instruction be declined?>
if you do not have enough info
do not have sufficient facts
client will not sign
PII liability cap not agreed
What are the 3 steps to handling a COI
conflict avoidance Vs conflict management
What is the professional statement for COI
RICS proff statement on conflicts of interest 2015
All about informed consent
at are the 3 types of conflict
party conflict
own interest conflict
confidential information conflict
Rules behind CHP
always inform your PII insurer
must maintain a complaints log
firms must include an RICS approved ADR in the CHP
CPD requirements
20 hours. 50% formal
what is PII cover and what are cluttons limits and talk about it?
Professional indemnity insurance
min cover £1m max cover £50m
agreed on an ad hoc basis different for each instruction
any vals with estimated value over £5m we look to agree 33% of the MV
hat is run-off cover and what are the requirements?>
required following cessation of trade. minimum 6 years.
what is negligence?
duty of care exists to clients and third parties
break = loss = damages/ negligence
how to avoid negligence
understand clients objectives
ensure you are competent to carry out the work
make detailed filed notes
what is the proff statement on client money handling?
Proff statement on client money handling 2019
What is involved in client money professional statement
holding client money
providing info to clients
receipts of client money
payments from client accounts
Should your complaints handling procedure be approved by the RICS?
Yes
What are the 3 types of conflict?
party conflict
own interest conflict
confidential info conflict
How did you agree your fee?
by negotiation.
It was fair, didn’t undercut the market, no collusion
What are the requirements for setting up a new practice?
must inform the RICS
appoint a principle
Arrange PII cover - certificate
set up procedure for handling clients money
Register for RICS valuer Registration Scheme
appoint CHO
Ensure CPD is logged
complete an annual return
What is the statutory compliance for firms?
health and safety act 1974
equality act 2010
bribary act 2010
money laundering officer
asbestos register
How do you close a practice?
inform the RICS
inform clients at your earliest opportunity
hand over arrangements made to a new firm
return money to clients
inform insurers
make sure you have adequate run off cover min 6 yrs
retain copy of client files for a minimum of 6 years
what is the legislation behind bribery
bribery act 2010
what does the bribary act state?
giving, offering, promising or receiving. Includes six principles
what are the 4 offences under the bribery act?
Bribing
receiving a bribe
bribing a public foreign official
failing to prevent a bribe
what is the other act in relation to crime>
Proceeds of crime act 2002
what is the professional statement on bribery>
countering bribery, corruption, money laundering and terrorist financing 2019
Six principles of the bribery act 2010
proportionality
top level commitment
risk assessment
due dilligence
communication
mentoring
what is the UK gov sanctions list
sanctions on people around the world. e.g russian lot
levels of DD?
Due dilligence and enhanced DD.
PEP ?
politically exsposed person
what are the penalties for money laundering>
max 14 years in for assisting.
5 years in prison for tipping off.
What are CPD requirements for members?
Members must carry out a minimum of 20 hours per annum.
10 hours must be formal
members must also carry out an ethics test every 3 years
members must add their CPD using the RICS CPD management system by 31st Jan each year.
Are there any documents for social media? States?
RICS guidance Note on the use of social media 2021
States that act in line with the rules of conduct.
RICs can request that certain content is removed.
Are you aware of any recent elections within the RICS?
Yes, there was a new governing council re-election. Appointed a new head of diversity and equality and inclusion.
What are the red flags to look out for with money laundering?
cash, unusual currency, unwilling to provide proof of address or ID.
What are the 2 typed of DD to carry out on individuals?
Customer Due Dilligence
Enhanced DD.
What are the procedures when a member breaches their obligations?
Appeal panel, disciplinary panel and action by head of regulation.
What can the head of regs do in terms of fines etc?
fixed penalty, which is usually a sum of money.
Regulatory compliance order - usually for CPD and is written document stating what the member must do and they can also fine you.
Action be the regulatory tribunal board - they can fine you, send you to court, take away your membership.
What is the role of the RICS?
maintain the highest standards, education and training.
be the leading source of information
protect consumers through strict regulation.
