Ethics, Rules of Conduct and professionalism (special) Flashcards
• Registration of firms, • Disciplinary procedures, • RICS structure, • Professional groups • Current RICS issues and affairs
What are advantaged to become ‘Regulated by RICS’ designation
- 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.
What criteria your firms need to met to become Regulated by RICS
- 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.
What are the rules of Conduct for Firm? (current)
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
What are the new Rules of Conduct? (effective from 2 February 2022)
- 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.
What are the mandatory obligations for RICS regulated firms?
- 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
What are mandatory obligations for RICS member?
- 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.
Why was the new rule of conduct updated?
- 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.
What will be replaced by the new rules (lunched on 11/10/2021 and effective from 02/02/2022
- Rules of Conduct for Members
- Rules of Conduct for Firms
- Global Professional and Ethical Standards.
What are the rules for using the RICS logo?
- 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
What is the RICS Decision Tree?
Flowchart to help members decide how to act in difficult situations where their professional ethics may be at stake
What are the penalties under the current bribery legislation?
A maximum 10 years’ imprisonment and/or an unlimited fine
Give some examples of where conflicts of interest may arise.
- 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
Your neighbour asks you for help in designing a loft conversion - what would you do?
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
What standard are judgements under the current bribery legislation based upon?
Judgments are decided based on the ‘reasonable person’ test
Does the RICS publish any guidance on the Disciplinary Measures?
Yes, there is a large section on the RICS website.
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?
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
What is Royal charter?
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,
Can you name some of the professional groups?
- 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
What are the benefits of getting involved in Professional Groups?
- 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
What are fixed penalties and when are they issued?
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.
what is a Regulatory Compliance Order?
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
What a regulatory Compliance Order consist of?
- 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
Explain the RICS governance structure?
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
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What is Privy Council?
The Privy Council is an advisory body to the Monarch; its members are known as Privy Counsellors.
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.
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.
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.
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.
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.
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.
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
What are the three market sectors covered by the RICS?
Land, Property, Construction
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.
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.
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.
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.
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.
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.
