Ethics, rules of conduct Flashcards by George Carter

When was RICS founded

1868

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When did they gain the royal charter and from who?

privy council in 1881

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Governance of the RICS

councils, boards, associations.

Governing council at the top. then standards and regulation board then RICS board underneath.

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What was the review in 2021

levitt review - states we need clarity, purpose, strategy and governance restructuring.

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3 main roles of the RICS`

maintain high standards
protect consumers
leading source of info

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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.

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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.

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5 benefits to being an RICS surveyor

knowledge
status
recognition
market adv
network

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3 benefits of regulation of a firm

confidence
professionalism
security

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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

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RICS rules of conduct

integrity, professionalism, and obligations
competence
good service
diversity and inclusion
act in public interest, responsibility and prevent harm

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Firms professional obligations to RICS

publish CHP
SHow PII certificate
cooperate with the RICS
provide info to the RICS if requested

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Surveyors professional oligations to the RICS

comply with CPD requirements
cooperate with the RICS
provide info to the rics if requested

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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

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ethics decision tree, what is it for?

gives surveyors support on considering the legality of ones actions.

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Who regulates the RICS surveyors

Standards and regulatory board

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What are the 3 levels of disciplinary action on surveyors?

action by head of regulation
Diciplinary panel
appeal panel

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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

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what can the regulatory diciplinary tribunal panel do?

issue a regulatory compliance order
reprimand
fine
expulsion from the profession

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How do you negotiate a fee?

avoid price fixing
no collusion of firms
do not under cut the market
be transparent with clients

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What are the 3 steps to TOE

check competence
carry out COI
agree TOE

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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

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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.