Ethics, Rules of Conduct and professionalism (special) Flashcards
• Registration of firms, • Disciplinary procedures, • RICS structure, • Professional groups • Current RICS issues and affairs
1
Q
What are advantaged to become ‘Regulated by RICS’ designation
A
- Practises to globally recognised standards.
- Behaves ethically and acts with integrity and honesty.
- Has the required skills and competencies to do the job.
- Manages conflicts of interests transparently.
- Safeguards the security of client money.
- Manages its finances appropriately.
- Provides adequate and appropriate indemnity for your work.
- Handles complaints and disputes fairly.
2
Q
What criteria your firms need to met to become Regulated by RICS
A
- Offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services.
- Have at least 25% principals (a senior manager, partner or owner), who are qualified RICS professionals (MRICS, FRICS, AssocRICS).
- Agree to observe and comply with RICS Rules of Conduct for Firms, including working to RICS standards.
- There is no fee for registering your firm for regulation.
3
Q
What are the rules of Conduct for Firm? (current)
A
Part I – General
1. Interpretation
2. Communication
Part II – Conduct of Business
3. Professional behaviour
4. Competence
5. Service
6. Training and Continuing Professional Development (CPD)
7. Complaints handling - The complaints-handling procedure must include an Alternative Dispute Resolution (ADR) mechanism that is approved by the Standards and Regulation Board.
8. Clients’ money
9. Indemnity
Part III – Firm Administration
10. Advertising
11. Solvency
12. Arrangements to cover the incapacity or death of a sole practitioner
13. Use of designations
14. Information to RICS
15. Cooperation
4
Q
What are the new Rules of Conduct? (effective from 2 February 2022)
A
- Rule 1: Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS. - Rule 2: Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Rule 3: Members and firms must provide good-quality and diligent service
- Rule 4: Members and firms must treat others with respect and encourage diversity and inclusion.
- Rule 5: Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
5
Q
What are the mandatory obligations for RICS regulated firms?
A
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms
6
Q
What are mandatory obligations for RICS member?
A
- Members must comply with the CPD requirements set by RICS.
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
7
Q
Why was the new rule of conduct updated?
A
- A simpler structure. We are making it easier for RICS members and firms to understand our rules, providing more confidence for clients and the public.
- Clear examples. We want to support members’ professional judgement, so each Rule is illustrated with examples of how members and firms can behave to comply with the Rule. There are also 12 case studies showing real-life application of the Rules.
- Focusing on respect, diversity and inclusion. Whether it’s encouraging diversity and inclusion, or tackling modern slavery, respect and courtesy underpin all our professional ethics.
- Understanding evolving technology. The Rules highlight the importance of understanding the evolving use of data and technology, and the associated benefits and risks.
- Tackling global challenges. The Rules show that ethical practice by RICS members and firms has an important role when it comes to global challenges, including creating sustainable development and tackling climate change.
8
Q
What will be replaced by the new rules (lunched on 11/10/2021 and effective from 02/02/2022
A
- Rules of Conduct for Members
- Rules of Conduct for Firms
- Global Professional and Ethical Standards.
9
Q
What are the rules for using the RICS logo?
A
- Personal use of the logo RICS Members have the right to use the RICS logo appropriately and professionally on personal stationery (e.g. business cards), whether a partner, director or employee. This applies to all qualified members – Fellows (FRICS), Professional Members (MRICS) and Associate Members (AssocRICS), no matter what type of organisation they work for or the surveying activities they carry out.
- Use of the logo by firms The logo can only be used by a firm which is registered for regulation with the RICS – a Registered Firm. It must be used appropriately and professionally. The RICS logo is a registered trademark and should not be used or altered without permission.
- see Rules for the use of the RICS logo and designations by firms
10
Q
What is the RICS Decision Tree?
A
Flowchart to help members decide how to act in difficult situations where their professional ethics may be at stake
11
Q
What are the penalties under the current bribery legislation?
A
A maximum 10 years’ imprisonment and/or an unlimited fine
12
Q
Give some examples of where conflicts of interest may arise.
A
- Acting for two different parties with competing interests at the same time
- Financial interests (e.g. gaining over and above your normal fee)
- Personal relationship
- Commercial relationship
- Interests of your firm conflict with that of your client
13
Q
Your neighbour asks you for help in designing a loft conversion - what would you do?
A
No terms and conditions
No PII
Potential conflict of interest
Follow the RICS Decision Tree
Say no and offer to set up a formal meeting with a director of my firm
Alternatively, refer them to the RICS ‘Find a Surveyor’ service
14
Q
What standard are judgements under the current bribery legislation based upon?
A
Judgments are decided based on the ‘reasonable person’ test
15
Q
Does the RICS publish any guidance on the Disciplinary Measures?
A
Yes, there is a large section on the RICS website.
16
Q
Who is the president of the RICS?
Who is the vice president of the RICS?
Who is the senior vice president of the RICS?
Who is the CEO of the RICS?
A
Who is the president of the RICS? Clement Lau
Who is the president-elect of the RICS? Ann Gray
Who is the senior vice president of the RICS? Tina Paillet
Who is the CEO of the RICS? Sean Tompkins
17
Q
What is Royal charter?
A
Royal Charter is an instrument of incorporation, granted by The Queen, which confers independent legal personality on an organisation and defines its objectives, constitution and powers to govern its own affairs.
Examples: RICS, University of Cambridge, RIBA,
18
Q
Can you name some of the professional groups?
A
- Building Control
- Building Surveying
- Commercial Property
- Dispute Resolution
- Environment and Resources
- Facilities Management
- Geomatics
- Machinery and Business Assets
- Management Consultancy
- Minerals and Waste Management
- Our Mental Health
- Planning and Development
- Personal Property/Arts and Antiques
- Project Management
- Quantity Surveying and Construction
- Residential Property
- Rural
- Valuation
19
Q
What are the benefits of getting involved in Professional Groups?
A
- The opportunity to connect, network and engage with other professionals in your field of expertise
- Utilise your professional expertise through contribution to standards, guidance and technical journals
- Share market insight with RICS to influence the future direction of the profession including standards, technical guidance, entry criteria such as pathways and competences and policy and product development
- The use of alternative designations (e.g. Chartered Quantity Surveyor) find out more about alternative designations
- Receipt of a technical journal relating to the professional group’s area of expertise
20
Q
What are fixed penalties and when are they issued?
A
A fixed penalty is an administrative fine and/or caution issued by RICS when a Regulated Member fails to provide us with information that we have requested. This information can include: a firm or valuer submitting their annual return record, updating CPD records or payment of regulatory fees.
21
Q
what is a Regulatory Compliance Order?
A
A Regulatory Compliance Order is an agreement between RICS and a Regulated Member that they are liable for disciplinary action
The Regulated Member:
- admits that they have fallen short of the standards expected
- agrees to an appropriate sanction
- in some cases, take steps to meet the standards expected and/or to prevent it happening again
22
Q
What a regulatory Compliance Order consist of?
A
- Caution
- Reprimand
- A requirement that the Regulated Member gives one or more undertakings as to future conduct
- A requirement that the Regulated Member takes or stops taking certain actions within a specified period of time
- Conditions on the Regulated member’s continued membership of RICS
- Conditions on a Regulated Members registration for regulation
- A requirement that the Regulated Member pays a fine of up to £2000 per breach
23
Q
Explain the RICS governance structure?
A
RICS corporate governance structure is shaped by the Royal Charter, Bye-Laws and Regulation. RICS’ governance structure combines governance bodies, as well as the Executive Team and Presidential Team, working harmoniously to set and execute our forward-looking strategy, so that we create confidence in markets and effect positive change in the built and natural environments.
This include:
- Privy Council
- Governing Council
- Regulatory Tribunal
- Standard and Regulation Board
- Management Board (Finance Committee, World Regional Boards and Market Advisory Panel, Remuneration Committee)
- Audit Committee
- Nomination Committee
- Presidential Nominations Committee
*
24
Q
What is Privy Council?
A
The Privy Council is an advisory body to the Monarch; its members are known as Privy Counsellors.
25
What is Governing Council?
* Governing Council is RICS highest governing body, setting the global strategy and ensuring RICS fulfils its Royal Charter obligations.
* It provides strategic oversight on requirements for entry into the profession, and the setting and enforcement of professional standards so that RICS continue to deliver confidence in the built and natural environment.
* It also shapes RICS priorities as an influential thought leader, and provides high-level assurance on operations as a sustainable business and professional body.
26
What is Regulatory Tribunal?
The RICS Regulatory Tribunal consists of a Presiding Chair, lay members and RICS professionals. All of the panels involved in our disciplinary procedures are drawn from members of the tribunal.
27
What is Standard and Regulation board?
The Standards and Regulation Board has exclusive responsibility for strategy, policy and operational oversight of the standards, entry and admission to the profession (through RICS’ education and qualification standards), and regulatory functions of RICS.
The Board is comprised of non-members (independent) and members of RICS, and reports to Governing Council.
28
What is Management Board?
The main purpose of the Management Board is to direct RICS affairs under delegated authority from Governing Council. The Board is comprised of non-members (independent), members of RICS, and RICS Executives.
29
What is Audit Committee?
* The Audit Committee operates independently of Governing Council, the Management Board and the Standards and Regulation Board.
* Its remit extends across the whole organisation, including the regulatory function. Each year it reports to Governing Council at its oversight meeting on how it has discharged its duties.
* The Committee is comprised of independent non-members and members of RICS.
30
What is Nominations Committee?
* The Nominations Committee plays a strategic role in overseeing and approving changes to the Global Appointments Model and to play an advisory role in talent and succession planning for Governing Council and act as the Appointment Panel to Governing Council.
* The Committee is comprised of non-members (independent), members of RICS and RICS Executives.
31
What is Presidential Nomination Committee?
Presidential Nominations Committee assists Governing Council in the election of the Senior Vice President by assessing candidates against a fair and transparent process.
The Committee is comprised of non-members (independent), members of RICS and RICS Executives
32
What are the three market sectors covered by the RICS?
Land, Property, Construction
33
What is meant by 'professional behaviour' as one of the 15 rules for firms?
Shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with its professional obligations.
34
What is meant by 'competence' as one of the 15 rules for firms?
Shall carry out its professional work with due skill, care and diligence and with proper regard for the technical standards expected of it.
35
What is meant by 'service' as one of the 15 rules for firms?
Shall carry out its professional work with expedition and with proper regard for standards of service and customer care expected of it.
36
What is meant by 'CPD' as one of the 15 rules for firms?
Shall have in place the necessary procedures to ensure that all its staff are properly trained and competent to do their work.
37
What is meant by 'complaints handling' as one of the 15 rules for firms?
Shall operate a complaints handling procedure and maintain a complaints log. The complaints handling procedure must include an Alternative Dispute Resolution (ADR) that is approved by the Regulatory Board.
38
What is meant by 'client's money' as one of the 15 rules for firms?
Shall preserve the security of clients' money entrusted to its care in the course of its practice or business.
39
What is meant by 'professional indemnity insurance' as one of the 15 rules for firms?
Shall ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity insurance cover which meets standards approved by the Regulatory Board.
40
What is meant by 'advertising' as one of the 15 rules for firms?
Shall promote its professional services only in a truthful and responsible manner.
41
What is meant by 'solvency' as one of the 15 rules for firms?
Shall ensure that its finances are managed appropriately.
42
What is meant by 'arrangements to cover the incapacity or death of a sole practitioner:' as one of the 15 rules for firms?
That has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) shall have in place appropriate arrangements in the event of that sole principal's death or incapacity or other extended absences.
43
What is meant by 'Use of designations' as one of the 15 rules for firms?
Registered for regulation must display on its business literature, in accordance with the Regulatory Board's published policy on designations, a designation to denote that it is regulated by RICS.
44
What is meant by 'Information to RICS:' as one of the 15 rules for firms?
Shall submit in a timely manner such information about its activities, and in such form, as the Regulatory Board may reasonably require.
45
What is meant by 'Co-operation:' as one of the 15 rules for firms?
Shall co-operate fully with RICS staff and any person appointed by the Regulatory Board.
46
What is meant by 'Professional behaviour' as one of the 9 rules for members?
Members shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with their professional obligations.
47
What is meant by 'Competence:' as one of the 9 rules for members?
Members shall carry out their professional work with due skill, care and diligence and with proper regard for the technical standards expected of them.
48
What is meant by 'CPD' as one of the 9 rules for members?
Members shall comply with RICS’ requirements in respect of continuing professional development.
49
What is meant by 'solvency' as one of the 9 rules for members?
Members shall ensure that their personal and professional finances are managed appropriately.
50
What is meant by 'information to RICS' as one of the 9 rules for members?
Members shall submit in a timely manner such information, and in such form, as the Regulatory Board may reasonably require.
51
What is meant by 'Co-Operation' as one of the 9 rules for members?
Members shall cooperate fully with RICS staff and any person appointed by the Regulatory Board.
52
What does the RICS state about PI insurance?
Rule 9 of the RICS Rules of Conduct for Firms requires all regulated firms to be covered adequate and appropriate PII which meets the standards approved by the Regulatory Board
53
What should a PII policy contain?
1)Must be on a claims made basis 2)Must be on an each and every claim basis 3)Policy wording is written on a full civil liability basis 4)Underwritten by a listed insurer 5)Covers past and present employees 6)Run-off cover 7)Minimum level of indemnity required by the RICS
54
What is PII and what is its purpose?
Professional Indemnity Insurance (PII): Protects firms against losses resulting from professional negligence, errors and/or omissions which cause financial loss to a third party Ensures a firm's clients do not suffer financial loss which the firm cannot meet
55
How would you determine what is sufficient in terms of PII runoff cover?
Should be for a minimum of 6 or 12 years, depending on how the contract was executed, however negligence claims can be made up to 15 years after work was undertaken - advice from an insurance broker should be sought as to whether to maintain for the full 15 years
56
What is generally excluded from PII cover?
1) Material damage 2) Theft 3) Personal injury 4) Damage to third party property 5) Work carried out prior to the inception of the policy 6) Insured v insured claims (i.e. a company suing an employee for professional negligence) 7) Insolvency
57
What are the minimum levels of PII required?
1) £100,000 or less turnover = min. £250,000 indemnity 2 )£100,001 to £200,000 turnover = min. £500,000 indemnity 3) £200,001 and above turnover = min. £1,000,000 indemnity
58
What should you do in case of a potential claim on your PII?
Must notify insurer in the event of: An actual claim A written or verbal threat of a claim Any circumstance that the firm has reason to believe may result in a claim Any complaint notified via the firm's CHP
59
How can negligence claims be avoided?
1)Good communication 2)Clearly understand client's objectives and confirm precise details 3)Check you are competent to perform the instruction 4)Undertake work in accordance with any relevant RICS guidance 5)Keep up-to-date notes 6)Be aware of changes in legislation 7)Try and resolve any complaints as soon as possible
60
What is the RICS Assigned Risk Pool?
1) Insurance facility for regulated firms that find themselves unable to obtain PII in the normal market 2) Firms can remain in the ARP for a maximum of 3 years, where they will be audited and guided in how to amend their business procedures/practices ready to obtain market PII again
61
What are the five principles of better regulation for?
Whenever RICS receive a complaint or conduct an investigation, there are five principles that dictate their regulatory process.
62
What is meant by proportionality as part of the 5 principles of better regulation?
Looking at the seriousness of the contravening of the rules, for example, was the contravening just the use of an old logo. Regulating when necessary and taking actions that are appropriate and legitimate.
63
What is meant by Accountability as part of the 5 principles of better regulation?
Making sure there is a structure in place so everyone knows what they should be doing. Able to justify any action and decision, ensuring transparency and be subjected to public scrutiny.
64
What is meant by consistency as part of the 5 principles of better regulation?
Making sure the rules are applied in a common way to every member and firm. Ensuring a common mind set and approach to promote fairness.
65
What is meant by targeting as part of the 5 principles of better regulation?
Focused and unambiguous regulation based on risk.
66
What is meant by transparency as part of the 5 principles of better regulation?
Ensuring clear definitions, effective consultation and communication is always used.
67
What must a RICS regulated firm do in relation to money laundering and terrorist financing?
-not facilitate or be complicit in any money laundering or terrorist financing -Report any suspicions to relevant authority -Evaluate and review periodically the risks that prospective and existing business relationships present in terms of ML and TF -Ensure that their responses to the risks identified are appropriate, including conducting appropriate checks on clients and customers. -use reliance only where there is an appropriate level of confidence in the quality of the information provided by the third party – reliance should only be taken from third parties with standards conforming to the legal requirements, that provide the obliged market participant with a complete exchange of all legally required AML information regarding the identified party and only by confirming the identity and verification of identity of the client or counterpart in question; ultimate responsibility for the assessment of risk and actions taken based on this remain with the member or regulated firm -take appropriate measures to understand the client and the purpose of the transaction -verify the identity of their client by undertaking basic identity checks -record and retain information detailing how the firm has met the requirements of this professional statement.
68
What should a complaints handling procedure entail?
• be fit for purpose – it should reflect the size and structure of the business • made available to all staff – a CHP is intended to provide clarity and consistency to staff and clients • be understood by all staff – keep records of staff training • readily be shared with complainants or potential complainants – supplying them with a copy should be routine • be regularly reviewed at a senior level – record evidence of review, to include reviewer details and review date • be agreed with PII brokers/provider(s) – the CHP should reflect processes that do not compromise PII cover and • provide details of access to independent redress if the firm cannot resolve the complaint.
69
How many RICS members are there?
Over 180,000 which includes 80,000 students and trainees.
70
What can or cant RICS regulate in terms of complaints?
RICS must follow the 5 Principles of better regulation when assessing complaints. This needs to be on a case by case basis and must be proportionate
71
What happens if a member contravenes the rules?
-Disciplinary hearing -Expulsion from RICS -Told to correct (for example, using the wrong logo)
72
What are 6 principles for dealing with bribery?
- Proportionality - Top level commitment - Risk assessment - Due diligence - Communication - Monitoring and review.
73
What is the benefit of a firm to be part of the RICS?
- Protection - Security (Complaints handling procedure) - Commitment to higher standard - Ethical approach - Guarantee of professional training and experience
74
What determines the level of PI premium? (relate to car insurance) This is the amount the firm pays for insurance every month.
- Firms size - Risk - Claim's history - Number of staff
75
What do you need to be registered as a RICS firm?
-Surveying service provided -Have at least 25% principals (a senior manager, partner or owner), who are qualified RICS professionals (MRICS, FRICS, AssocRICS). -Agree to observe and comply with RICS Rules of Conduct for Firms, including working to RICS standards. -PII insurance - CHP - MHP - Contact officer - Names and titles of principals
76
What is the procedure to register a firm to the RICS?
An application to register for regulation by RICS must: -a) provide information to RICS in such form as prescribed by the Regulatory Board; -b) agree that RICS may share relevant information about the Firm with government or other regulatory bodies as appropriate; and -c) agree that if RICS declines to register the Firm RICS may publish its decision.
77
What services does the RICS provide?
- Research - BCIS - Providing guidance notes - Training - CPD - High ethical standards -Adjudication and arbitration
78
How is the senior vice president voted in?
Presidential Nominations Committee assists Governing Council in the election of the Senior Vice President by assessing candidates against a fair and transparent process.
79
What is the RICS international mission?
- To qualify and equip our professionals to the highest level - To promote and enforce standards - To lead solutions to the major challenges facing the built environment through professional expertise.
80
What are the benefits of being a fellow?
- How to become a fellow: - Expert in the field - Involved for a number of years - Recognition that person knows greatly.
81
What is lionheart providing?
- Financial aid to surveyors - Mental health support
82
What is the RICS foundation?
- Independent worldwide foundation - Raised in 2000 - Raised awareness about the build and natural environment - Supports research and shares results.
83
What are the black and red books?
Guidance notes - Black is for QS and construction - Red is for valuing property and are mandatory
84
What insurances do you need if you start your own firm?
- PII - Employers liability (costs if an employee claims compensation for illness or injury that they believe has been caused by their work) - 3rd party liability (purchased by an insured (first-party) from an insurer (second party) for protection against the claims of another (third party).
85
How are the RICS disciplinary actions/rules regulated?
* The Regulatory Tribunal Rules (formerly the Disciplinary, Registration and Appeal Panel Rules) set out RICS processes, the decisions we can take and regulatory actions available to us.
* For less serious cases where the Regulated Member admits allegations, we can use a Regulatory Compliance Order to ensure future compliance with our standards.
* For the most serious cases it may be necessary for us to refer a case to a Disciplinary Panel, drawn from the independent Regulatory Tribunal.
86
5 Principles of Better Regulation and what do they mean?
1. Proportionately - to intervene only when necessary
2. Accountability - take responsibility to justify decisions
3. Consistency - adopt common and consistent approach to implement regulations fairly
4. Targeting - target the issue itself to minimize the problem directly
5. Transparency - keep regulations clear, simple and user friendly
87
What is CSR?
Corporate Social Responsibility - action taken that positively impacts on the environment, communities, the workplace and suppliers
88
Can you name some guidance notes?
* Change Control and management, January 2021
* Interim valuations and payment, August 2015
* Conflict avoidance and dispute resolution in construction, 2012
* Tendering strategies, 2014
* Surveying safely: health and safety principles for property professionals, 2018
89
Can you name some RICS Professional Statements?
* rule of Conduct for Firm, Members and new rules of conduct
* Countering bribery and corruption, money laundering and terrorist financing
* Client money handling, 2019
* Conflicts of interest
* Professional indemnity insurance requirements
90
What must regulated firms submit to the RICS and how often?
Yearly
Financial status
Complaints policy
Money policy
P.I
91
Types of documents that RICS issues.
* **International standard** High-level standard developed in collaboration with
other relevant bodies.
* **RICS professional statement (PS) -** Mandatory requirements for RICS members and RICS-regulated firms.
* **RICS guidance note (GN)** - A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
**RICS code of practice (CoP)** A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note.
* **RICS jurisdiction guide (JG)** This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.
92
What is BCIS?
* Building Cost Information Service
* BCIS produce detailed knowledge of the current state of the construction sector in the UK, providing forecasts for the future as well as case studies of outstanding projects.
93
What is isurv?
isurv is the online knowledge hub for verified expertise and guidance on the built environment.
94
Types of disciplinary actions
The Disciplinary Panel have a wide range of disciplinary sanctions available to it if it finds an allegation proven, for example –
* it can issue a caution,
* reprimand,
* fine,
* impose conditions or undertakings,
* or expel a member/firm from RICS.
95
CPD Santions
* failure to comply with the requirements for the first-time results in a fixed penalty caution being placed on a Regulated Member's record
* failure to meet the obligations for a second time will result in a fixed penalty in the form of a caution and a fine, with the details of those receiving the second time fixed penalty being published on the RICS website
* failure to meet the obligations for a third time will normally result in referral to a Disciplinary Panel
