Ethics, Rules of Conduct and professionalism Flashcards
What are 5 ethical standards for RICS?
- Act with integrity
- Always provide a high standard of service
- Act in a way that promotes trust in the profession
- Treat others with respect
- Take responsibility
What do you understand by Act with Integrity?
This means being honest, trustworthy and straightforward in all you do
Not taking advantage of a client, a colleague or third party of whom you might have duty of care for
Making clear if there is a conflict of interest
Ask yourself how would my actions look if they were published to the press, colleagues?
What do you understand by ‘always provide a high standard of service?’
- client receive the best possible advice, support, and performance of the terms of engagement you have agreed.
- Be clear about what service your client wants and the service you are providing.
- Act within you scope of competence, if it something you can’t do, refuse to do it, obtain consultation
- Be transparent about fees
- Encourage your firm or organization you work for to put the fair treatment of clients at the center of its business culture.
Questions
Do I explain clearly what I promise to do and do I keep that promise?
Do I look at ways to improve the service I provide to my clients?
What do you understand by ‘Act in a way that promotes trust in the profession’?
Act in a manner for both professional and private life to promote your firm or organization you work for and the profession in a professional and positive way
Doing what you say you will.
Always trying to meet the spirit of professional standard and not just the letter of standards.
Question?
Do my actions promote the profession in the best light possible?
What do you understand by treat others with respect?
This means threating people with courtesy , politeness regardless of their race religion age gender. Also being aware of cultural sensitivities and business practices
Do not discriminate for any reason
Question
Are my personal feelings, views, prejudices or preferences influencing my business decisions?
How you would feel if somebody treated me this way?
What do you undertand by ‘Take responsibility’ ?
This means being accountable for all your actions – don’t blame others if things go wrong and if you suspect something isn’t right be prepared to do something about it.
If someone makes a complaint you need to address it with a professional manner and aim to resolve the mater in the satisfaction to the complaint.
If something is not right be prepared to question it.
Questions?
Am I approachable?
Does my firm or organization have a clear complaint handling procedure?
Do I learn from complaints?
Do I take complaints seriously?
Have I considered taking advise from RICS?
What are the rules for Firms in the RICS?
- Interpretation
- Communication
Communicate with post, fax, email, telephone , in person - Professional behavior
A firm shall always act with integrity and avoid conflicts of interest and it avoid any situations that are inconsistent with its professional obligations - Competence
A firm shall carry out its professional work with due skill, care and diligence and with proper regard for the technical standards expected of it. - Service
Carry out work with a proper regard for statnads of service and customer care expected of it - Training and Continuing Professional Development
A firm shall have in place the necessary procedures to ensure staff are properly trained - Complaints Handling
Firms should have a complaints handling procedure and maintain a complaints log. It should include an ADR mechanism that is approved by Standards and regulations Board - Clients Money
A firm shall preserve the security of clients money entrusted to its care in the course of its practice - Indemnity
A firm shall ensure that all previous and current professional work is covered by adequate and appropriate indemnity cover which meets standards approved by the standard and regulation board. - Advertising
A firm shall promote its professional services only in a truthful and responsible manner - Solvency
A firm shall ensure that its finances are managed appropriately - Arrangements to cover the incapacity or death of a sole practitioner
- Use of designations
A firm registered for regulation must display on its business literature in accordance with the Standards and regulation Boards published to resignation. - Information to RICS
Provide information about its activities - Cooperation
A firm shall cooperate fully with RICS Staff
If you were setting up your own firm tomorrow, what would you have to do?
- Inform RICS
- Register my company to HRMC
- Set up PI insurance and any other appropriate insurances
- Set up a complain handling procedure
- Open a bank account to finance the company
- Locum
What are the rules for members?
- Interpretation
- Communication
- Ethical behaviour
- Competence
- Service
- CPD
- Solvency (ensure personal and professional finances are managed appropriately
- Information to RICS (Members should provide information tat the standards and regulation board may reasonably require)
- Cooperation
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.
What is CPD? How much time should be doing if you become MRICS?
- 20 hours minimum a year 50% should be formal. Must be recorded by 31st January
- Member must maintain a relevant and current understanding of professional and ethical standards during a rolling three-year period
Are there any exemptions in the CPD rules?
Members who are unemployed
Go to maternity paternity, adoption etc. leave
Long term sick and may non- practicing for other compassionate reasons.
What are components of Complain handling procedure?
- Fit for purpose (reflect size and structure)
- Made available to all staff
- Be understood by all staff – keep records of staff training
- Readily be shared with complainants
- Be regularly reviewed
- Be agreed with PII brokers
- Provide details of access to independent redress if the firm cannot resolve the complaint.
What happens if a complaint is not resolved?
• Stage 2 - Independent redress system
Why do you want to become chartered?
- Through chartership I would be part of a global network of professional where I would be continuedly learning new skills.
- I will be able to promote the profession that I am passionate about in good light and in the advantage of the public.
Difference between Red book and Black book?
- Red book provide guidance on asset valuations
* Black book provides guidance for quantity surveying and construction professionals.
Why do we need the RICS ethics?
- It aids members to act in a professional capacity and to deliver ethical, robust and proper service.
- Also, the rules promote the usefulness in the profession for public advantage
- Maintain high professional standards.
What is the Bribery Act 2010?
It is a legislation that covers criminal law in regard to bribery. It has 4 main offences:
• General offence of bribing
• General offence of being bribed
• Offence of bribing a foreign official
• Corporate offence of failing to prevent bribery by individuals that associated with the cooperation. That’s why companies need to have adequate procedures in place.
What procedures does the Bribery Act 2010 enforce?
- Training to employs about bribery
- Due diligence on who the company is doing business with (asking for anti-bribery procedures)
- Clear, practical, and accessible policies and procedures: everyone you are in business with you should be enforcing the procedures
- Monitoring and review like auditing your finance department
How do you assess risk of bribery to your organization?
Firstly, you can make sure that you trust the people you work with.
Also might use simple internet searches to find out about the levels of corruption or bribery in the particular country you propose to do business in
What is a bribe?
A reward offered, promised, or provided to gain any commercial, contractual, regulatory or personal advantage.
What are 6 principles that apply to the Bribery act?
- Proportionality – procedures put in place should be proportionate to the risk and the size of the company
- Top level commitment -Senior professional have no risk of bribery
- Risk Assessment- Carry out risk assessment
- Due Diligence: This is about having a risk-based approach to business relation ships
- Communication – Employers will need to communicate their policies and provide any additional training
- Monitoring and review -as risk may change you will need to regular review this.
How do you comply with the Bribery Act?
- My company has a anti bribery policy that I follow, I undertake any possible trainings that are offered
- If I noticed any bribery I would report it to the serious fraud office or national crime agency.
What other legislation are you aware of in terms of ethics?
• Money laundering and terrorist Financing Regulations 2019
What is PI insurance?
- Professional indemnity insurance
- An insurance product design for professional firms and people which covers them in the event of an error made during their business.
Why is PI insurance needed?
- Policy covers legal defense costs, investigation costs, and any damages awarded.
- Ensure that the firms’ clients do not suffer financial loss which the firm cannot meet
What does the PI insurance need to include?
- Any one claim or aggregate plus unlimited round the clock reinstatement basis.
- Wording should be comprehensively written on full civil liability basis (minimum RIC wording)
- The minimum level of indemnity based on the firm’s turnover in the previous year.
- Cover past and present employees
- Underwritten by a listed insurer
What is the limit for professional indemnity ?
How do you avoid a PI Claim?
- Record recommendation and advice given
- Do not advise on a specialism outside your field of experience
- Avoid poor management and excessive workloads
- Follow RICS rules of conduct
What was the substantiation discrepancy at Anglian Water?
• They provided signed timesheets that were not accounted in their applied amount. As I checked that they were valid, I included them in the amount due
How do you split an activity schedule according to NEC?
• Clause 54.1
What is your company’s policy on Gifts and Hospitality?
Gifts
• Zero Gifts policy but with the exemption that if a Promotional Item is offered bearing a company’s logo and shall and not exceed EUR 20 (twenty euros) per item.
• Gifts are allowed if they don’t make the recipient obliged to the giver
Hospitality
• Hospitality offered or received should serve a business purpose
• Employees shall not participate in activated organized solely for entertainment by customers.
• The value of hospitality should not exceed 100 Eur per person.
• Do not create an obligation to reciprocate.
Timeline for complain handling procedure
Stage 1
• Letter of notification /preliminary notice
• Must be acknowledged in writing within 21 days of receipt
a. We are in receipt of your letter of [date], which is acknowledged. We await a fully compliant Letter of Claim if your clients are intent on pursuing a claim. Any claim will be defended’.
Mention ADR
• 6 months after, if the person making the claim has not send any further correspondence, they should notify the professional of its intentions i.e weather they should notify the professional of its intentions with regard to the claim or dropping it etc.
Stage 2
• Letter of claim (intention for litigiation)
• This will detail the chronological summary on the facts on which the claim is based, what the professional done wrong, estimate of the financial loss suffered by the claimant and how it is calculated.
• Acknowledgement within 21 days
• Reply formally within 3 months
• If you respond by trying to settle then you commence negotiation that you try to resolve within 6 months.
• If not resolved within 6 months there could be an agreement to within 14 days to extend time
• If no, stakeholders review both parties to see if proceeding can be avoided or issues narrow
• If not, claimant commences court proceedings
Stage 3
• After ADR has been exhausted. Litigation (if it cannot be resolved)
• Claim to be valid it needs to be served on a defend within four months of issue.
Stage 4 • Before the court starts, they will except a. ADR to be considered b. Understand each other’s position c. Make decision about how to proceed
What does ‘without prejudice’ mean?
- Statement in a genuine attempt to resolve defense will not be used in court as evidence against the person making the statement
- It allows them to speak freely to settle
What are rules of conduct?
• It’s the different rules and ethical standards that professionals and firms should follow to be part of the RICS.
Why do we need rules of conduct?
• Provide a strong foundation for RICS and its members, helping to protect the public and uphold the reputation of the profession.
How do you become a fellow of the RICS?
• MRICS need to Show how your career experience demonstrates different professional characteristics set out by the RICS
a. Champion – Service to RICE, or to another professional body,
b. Influencer – diversity and inclusion
c. Role model – client care
d. Expert – teaching, qualitifcation
What would you consider not a bribe?
- Buying coffee for a client, the same way I would do for any other collogues
- Its normal practice
- Something that can be reciprocated – does not make the other person feel obliged
- I would consider obviously the time of giving the coffee, for example I wont do it during tendering stages etc
What is locum?
• When a sole practitioner has arranged cover i.e. another practitioner to cover his tasks, in the event of him/her not being able to practice his work i.e illness
How would you implement a Client Handling procedure?
- Have an email address or telephone number so that they can get in contact
- Ensure all staff have access to it and an understanding of it
- Record all the complaints in a register
- Set up a review process
- I would set up timescales that everything needs to be replied to so everything can get replied to quickly
- Where the complainant is a consumer, the firm has to signpost to an approved ADR provider. The Ombudsman can accept a complaint eight weeks after the complaint is made to you
What is money laundering? Money laundering officer
- When funds that have be generated through criminal activity , are being made legal.
- Under the UK’s Money Laundering Regulations 2007, every company should appoint a person to take that role who oversees the firms anti-money laundering systems.
What is a conflict of interest?
- It when a party or an individual providing is influenced by an existing relationship with an other party/individual when carrying out its services.
- For example, instead of serving the interest of the client you might serve the interest of a family member that owns a construction company.
- A conflict of interest can arise when your ability to exercise judgement is seen to be impaired or otherwise influenced by your role in another relationship.
- If an existing relationship with a third party makes you are unable to advise and represent each client objectively and independently.
When dealing with complaints, what redress scheme can be used?
The Ombudsman
What level of PII would you take out in the first year?
Based on your estimated turnover, if it’s something over 2000001 is one million pounds.
What is the assigned risk pool?
It is RICS market facility to provide RICS members PI insurance. It is when RICS firms are unable to get PI insurance but they meet the RICS standard.
