Ethics, Rules of Conduct and Professional Flashcards
What are the 5 Global professional and Ethical standards?
- (S) Always provide a high standard of service- Act within your scope of competence, be transparent about fees, communicate in way that allows your client to make an informed decision.
- (T) Act in a way that promotes trust in the profession- Understanding how your actions affects others and the profession, doing what you say
- (I) Act with integrity- being straightforward/ trustworthy and acting in the public’s interest
- (R) Treat others with respect- Treating people fairly, being considerate and never discriminate
- (R) Always provide a high standard of service- Act within your scope of competence, be transparent about fees, communicate in way that allows your client to make an informed decision.
What are the rules of conduct for members?
There are 9 rules: (ICE CSCS IC)
- Interpretation
- Commutation
- Ethical Behaviour
- Competence
- Service
- CPD
- Solvency
- Information to RICS
- Co-operation
Rules of Conduct for firms
There are 15 rules (ICE CSCS IC AUA CCI)
- Interpretation
- Commutation
- Ethical Behaviour
- Competence
- Service
- CPD
- Solvency
- Information to RICS
- Co-operation
- Advertising
- Use of designations
- Arrangements to cover incapacity or death
- Complaints Handling Procedure
- Client’s Money
- Indemnity
What are the Principles of Better Regulation? (PACTT)
- Proportionality
- Accountability
- Consistency
- Transparency
- Targeting
What is a bribe?
An inducement or reward offered, promised or provided in order to gain any commercial, contractual, regulatory or personal advantage.
What is the Bribery Act and when was it founded?
- The Bribery Act 2010 is an Act of the parliament of the UK that covers the criminal law relating to bribery.
- It is illegal to give or receive bribes and makes it criminal law
Tell me something you’ve learnt about Anti-bribery corruption and anti-money laundering?
- I learnt not to accept bribes
- Aware of my company’s stance on corruption and anti-money laundering.
Can you accept a gift from a Client or contractor?
Gifts can be accepted unless an assessment on the timing and proportionality of the gift.
- Be open and transparent (inform my line manager)
- Keep a record or put it in my company’s gift register (if the value exceeds £50)
- Consideration (Value, timing, proportionate, giver and receiver)
What is GDPR?
GDPR is a regulation that requires businesses to protect the personal data and privacy of EU citizens.
What are the 7 principles of GDPR? (LPD ASIA)
- Lawfulness, fairness and transparency.
- Purpose limitation.
- Data minimisation.
- Accuracy.
- Storage limitations.
- Integrity and confidentiality (Security)
- Accountability.
Can you explain what a conflict of interest is?
A conflict of interest is anything that impedes an individuals or firms judgement or ability to act impartial and in the best interest of a Client.
What is the risk of using only one party wall surveyor compared to using one? (Level 3)
If there is a dispute, you will need to appoint another party wall surveyor to mediate and resolve the dispute.
When was the RICS Founded?
15th of June 1868
Give your opinion on why the RICS have rules and codes of conduct?
o standardisation & consistency of service & approach
o maintaining professional standards
o governance and regulation.
If a client was prepared to pay you in advance for services you or your company was providing, how would you ensure that this was dealt with? (Level 2)
o Setting up a separate client account
o Providing the client with a statement.
o Informing and agreeing with the client on how and when monies will be drawn.
o Once the services are complete providing the client with a complete reconciliation of the account and all drawdowns.
o Ensuring that everything is auditable and completely transparent.
If a client was prepared to pay you in advance for the services you or your company was providing, how would you ensure that this was dealt with? (Level 2)
- Set up a separate client account that is properly named and clearly identifiable.
- Provide the client with a statement of the account once it has been set up.
- Informing and agreeing with the client on how and when monies will be drawn from the account.
- Prior to drawing monies sending the client a statement of how much will be drawn clearly identifying the services undertaken and fees to be drawn.
- Once the draw has been made, send the client a revised statement of account.
- Once the services are complete, provide the client with a complete reconciliation of the account and all drawdowns.
- Ensuring that everything is auditable and completely transparent.
If you were going to set up your own business and operate as a chartered surveyor, what insurances would you need to put in place? (Level 2)
- Professional Indemnity Insurance
- If I have my own office premises than I need building insurance,
- Public liability insurance, employers liability insurance and third party liability insurances
- Run off insurance
Can you advise on what a conflict of interest is and how you would deal with it (APC Trainer – Level 3)?
A conflict of interest is anything that impedes an individual or firm’s ability to act impartially and in the best interest of a Client
I would ask myself the question ‘could I work on the project without bias?’
Notify the client of a potential conflict of interest
Or respectfully decline the commission and offer up somebody else in my business who could work on the commission without bias or conflict of interest
What is a complaint?
Any expression of dissatisfaction.
How quickly should a complaint be answered?
We advise firms to acknowledge a complaint in a timely manner and recommend that a full response, or if this is not possible, an update, is given within 28 days. Not answering correspondence and not keeping the client informed can often exacerbate a complaint.
Can I review a complaint about myself?
Complaints are reviewed by a senior member of a firm or the firm’s designated complaints handler. If you are a sole practitioner, you may have to review the complaint yourself, in the knowledge that, if it cannot be resolved, it must be referred to an independent redress scheme.
What happens if the complainant isn’t happy with the review?
If the complainant isn’t happy with the review, move onto the second stage of the CHP and involve the redress scheme my firm has chosen to use.
What and when should I tell my insurers?
should inform its insurers as soon as possible to ensure compliance with the terms of your PII policy.
Tell me how you have demonstrated two of the 5 Global Professional & ethical standards on your case study project? (Level 2)
- In my project, I aimed to exceed the client’s expectations by ensuring I interrogated the contractor’s EoT claims that this offered a high standard of Service to my Client.
- As the issue of fire safety presented itself, I approached the Client’s Monitoring Architect to see if there were alternate products with limited combustibility - Taking responsibility
I treated the stakeholder with respect and acted with integrity when the issue arose.
Can you tell me which two of the five Global Professional & Ethical standards resonate with you the most? (Level 2)
I would say Act with integrity, always make sure you uphold the highest ethical standards and that you are honest with your dealings and always provide a high standard of service to my Client.
Why are the Rules of Conduct required?
- Confidence for clients knowing firms are regulated
- To ensure professionalism, clear and impartial advice is given
- To ensure firms have a recognised CHP
What is the Royal Charter
Awarded in 1881 by Queen Victoria “maintain and promote usefulness of the profession for public advantage”
Who is the current President of RICS?
Clement Lau FRICS
What is the RICS Motto?
S modus on rebus (Latin phrase) translates into:
“There is measure in all things”
Why do you want to become Chartered?
- See being a member of the RICS as being the gold standard of my profession.
- The level of guidance notes and support they offer their members will allow me to better serve clients.
- I know the RICS designation is highly valued by clients and will further my career development and opportunities.
- I am committed to lifelong learning, professional and personal improvement and believe the RICS will support me in achieving this.
What is the difference between ethics and integrity?
Ethics are a set of standardised rules for conducting yourself morally
Integrity is more of a personal code of conduct (doing the right thing)
What are the CPD requirements?
All Members must undertake a min of 20 hours CPD each calendar year.
Members must maintain a relevant and current understanding of RICS professional and ethical standards during a rolling 3 year period.
What is a locum?
A service that is provided on behalf of a sole practitioner in the event of incapacity. (Death)
What is required by the RICS in order to set up your own practice?
- I would inform the RICS and fill out a firm’s detail form.
- I would appoint a contact officer
- register with RICS a regulation
- I would arrange professional indemnity insurance and building insurance if I’ve an office and employer & public liability insurance
- I would set up a complaint handling procedure
- I would set up staff training sessions such as CPD sessions (10 informal / 10 formal)
- I would open a Clients account
Make arrangements in case of death (Locum) - Carry out ethical test every 3 years
Pay your member fees
What benefits does PII provide for the professional?
The professional is protected from financial loss
Do not meet the claim from their own assets and resources - Allowing continuity of business
What are the min levels of indemnity? / How do you determine the level of PI covers?
This depends on the firm’s turnover
if turnover is £100k or less it is £250k
If turnover is £100 - £200k it is £500k
if turnover is above £200k it is £1m
What is the purpose of PII?
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, error or omission (PII will cover you for any loss
Tell me about Merret V Babb? (RUN OFF cover in place)
- A court case in 2001
- Babb did a valuation as an employee of a company for a house purchased by Merret
- Valuation later found to be negligent
- The original company no longer existed
- The court ruled Merret could pursue the individual - Babb - for the losses
- Big shock to the industry
How long should the run off cover be in place?
Depending on the type of contact the professional has been involved with
usually, 6 years if contract executed underhand
12 years if the contract is a deed
Bidding for a project and the client advises you to reduce your fee down to win the tender what would you do? (Level 3)
I would advise my client this is unfair competion
not treating other with respect
Not acting with integrity
unsustainable to undertake business in this manner
When are the new rules of conduct changing?
2nd of February 2022
Why are the rules of conduct changing?
A simpler structure
Clear examples
Focusing on respect, diversity and inclusion.
And Sustainability
Name 3 types of conflicts that are outlined in the 2017 conflict avoidance practice note?
Party Conflict:
Where memebers interests conflixt with a client or where two or more clients interests conflict. (acting as both a developer and contractor)
Own interest conflict:
Acting in the interest of a client in a professional assignment conflict with the interest of that same member or firm
Confidential Information Conflict:
A conflict between the duty of an RICS to provide material information to one Client, and the duty of the RICS member to another client to keep the same inforamtion confidentail
Who is the RICS President-Elect?
Ann Gray FRICS
Who is the RICS Senior Vice President?
Tina Paillet FRICS
What was included in the RICS Surveying Safety 2018 guidance note?
Management of H&S at work
- Personal and Corporate responsibilities
- Legal considerations
- Hazards and Risks
- Places of work (“Safe Person” concept) 5. Occupational health (mental health)
- Site inspections Health & Safety at Work Etc. Act 1974.
- *Fire Safety * Duty of care of employer to ensure health, safety and welfare
- Residential Property Surveying Policed by HSE – criminal law.
- Construction work Hazard, People, Risk, Report, Review – risk assessment – plan of action
within your business, yourself and colleague was working on the same project, and would you ensure there was no conflict of interest?
I would notify my clients of any potential conflict of interest.
Agreement in place, no conflict.
Working on a separate floor,
Locks and documents secured?
What is the purpose of the RICS?
regulate and uphold standards.
Promote the industry
Protect RICS business and member
provide guidance and advice
What is the RICS moto?
“Est Modus in Rebus”
There is measure in all things!
Who is the CEO of RICS?
Richard Collin is the interim Chief Executive
● What is the RICS Black Book?
– Suite of guidance notes published by the RICS.
– Sets the standards for QS and construction professionals.
– Essential development tool for professionals working through their APC
● What are the differences in RICS documents?
– RICS Professional Statement – Mandatory requirements. Rules members/firms are to adhere to
– RICS Code of Practice – mandatory OR recommendations of good practice (confirmed in document itself)
– RICS Guidance Note – recommendations of good practice
– RICS Information Paper – practice-based information which provides the latest information
● What is the RICS’s mission statement?
– Quality & equip professionals to the highest level
– To promote & enforce standards
– To lead solutions to the major challenges facing through professional expertise
● What would you do if the client wanted to carry on with the conflict?
– Make sure I have got written confirmation from the client stating they are happy to proceed.
● What your company CHP?
– Allocate the complaint to an appropriate person
– Identify timescales for a response (7days to acknowledge from receipt, 28 days to respond)
– Notify insurers for PII purpose
– Investigate the complaint
– Identify outcome / course of action
– Communicate response to client
● What is run off cover?
– To provide financial cover in the event that a client suffers financial loss as a result of breach of professional duty. E.g. neglect or error
– For consumer claims - £1m limit for a minimum of 6 years from expiry date of policy
– Firm which are unable to obtain run-off cover from the market will be able to apply for coverage to the run-off pool (give temporary cover until firm can gain PI on open market)
● What are the CPD requirements for members?
– Chartered: 20 hours total: 10 formal & 10 informal - using online system
– APC: 40 hours: 20 formal & 20 informal
● Give an example of a conflict of interest, and how it can be avoided?
– Conflict of interest – where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially
– Example: an employee who is working for one company while talk to a vendor about coming to work for their company at a future date
I would disclose my relation and potential conflicts with my client and organisation
● what is an Information barrier/ Chinese wall?
– The physical or electronic separation of individuals with the same firm that prevents confidential information passing between them.
– Individuals acting for conflicting clients must be different
– Individuals must be physically separated
– Any information held must not be accessible to other teams
– The senior person must be independent and oversee arrangement
● What should a locum agreement include?
– nature of work – Responsibility of person – Fee/Hourly rate – Procedure to end the agreement – PI – Insurances
● What is the head office of the RICS?
– 12, Great George Street, Parliament Square
What is lionheart?
– Charity run by the RICS, supports current and past RICS professionals on their wellbeing. Also supports their families who have fallen on hard times.
● What is the decision tree? What are the steps involved?
– To help professionals understand whether to act on a decision and whether it is legal and in line with RICS ethics.
– Steps:
○ Do you have sufficient facts?
○ Is it legal?
○ Is it in line with the RICS global professional & ethical standards?
○ Have you consulted with the appropriate people to make an informed decision?
○ Do you have a clear reasoning in reaching a decision?
○ Would you be content with your actions to be made public?
● You state you understand the importance of acting in an ethical manner. Please can you explain why?
– Ensuring that clients’ interests are properly cared for
– Public interests are recognised and respected
What sort of information do registered firms have to send to the RICS annually?
Annual returns and done online. Failure to do so leads to a fixed penalty. Type of business and staff Tracing provision CHP PI insurance
What must a complaint handling procedure include?
The RICS provides a model form
Must include of address mechanism
Details should be issued to the client with the terms of business
It must be clear quick transparent and impartial and free of charge
Names and contact details of the nominated investigation person must be stated
The paint must be investigated within 28 days
Complaints must be recorded
Notify PI insurers just in case
Must have two stage minimum
Inform your manager
If not resolved
What is the purpose of professional indemnity insurance?
To provide financial cover in the event a client suffers financial loss as a result of a breach of financial duty for example negligence error or omission
What does the benefits of professional indemnity insurance cover?
The professional is protected from financial loss
Does not have to make a claim for their own assets and resources
Tell me about Merrett V Babb?
A court case in 2001.
Babb had done a valuation as an employee of a company for a house purchased by Merrett.
The valuation was later found to be negligent.
The original company no longer existed
The court ruled Merrett could pursue the individual (Babb) for the losses
How did you deal with the conflict of interest regarding your level 3 example?
(A Party Conflict) My Client, I was responsible for finding a Party Wall Surveyor which was recommended to us by a Consultant on the project.
We discovered that the Party Wall Surveyor we were appointing was also acting on behalf of the adjoining owner.
I observed they may be a conflict of interest between the other adjoining owner surveyor
So I flagged this as a potential issue to my client’s consideration.
Under the party wall act, you can have a Party Wall Surveyor acting on both parties providing that both parties agree to it as under the act the surveyor must act impartially.
What are the 3 types of conflict of Interest?
1 A ‘party conflict’ – a situation in which the duty to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.
2 • An ‘own interest conflict’ – a situation in which the duty to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.
3 • A ‘confidential information conflict’ – a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.
Why is correctly identifying conflicts of interest important?
It allows RICS regulated firms and members to demonstrate that professionalism, creates trust and
gives confidence to clients.
The RICS Rules of Conduct set out an overarching obligation for both RICS-regulated firms and members to always act with integrity and avoid conflicts of interest and any actions or situations that are inconsistent with their professional obligations.
What are the main roles of the RICS
Protect the interests of consumers and businesses through strict regulation of the profession
Maintain the highest standards of education and training in the surveying profession
Be the leading source of information and independent advice on land, property, construction and associated environmental issues.
Act in the public’s interest
What are the benefits of Joining the RICS
Status Recognition Market Advantage Knowledge Network
- How will you deal with a conflict in interest:
Informed consent
Reject the instruction
Information barrier
- What the required amount of CPD required by a RICS member ?
10 hour formal
10 hour informal
How do you deal with Anti money laundry ?
Ask customer for proof of address and up to date ID
Carry out due diligence on the customer
If an issue is spotted then report this to the Anti money laundry reporting officer to log a suspicious activity report
- What do you need to set up an RICS firm
Fill contact registration form
Inform RICS regulatory board
Appoint responsible person and complaints handling officer
Indemnity insurance / Run off cover
Approval of Complaints handling procedure
Client money
Arrangements in the event of incapacity or death
Training plan
Name me a professional statement?
Conflict of interest (2017)
Name me two guidance notes
Surveying safely 2018
Black book
Asbestos: legal requirements and best practice for property professionals and clients
Guidance Note for the valuation of properties in multi-storey, multi-occupancy residential buildings
How many professional groups are there in the RICS?
18 professional groups (Our mental health has just been added)
Please explain the amount of indemnity for the different turnovers
Up to 100k- 250k
£100,001- £200k – 500k
200k+ - £1m
What are the three levels of disciplinary action
Action by Head of regulations
Disciplinary panel
Appeal Panel
What actions can the head of regulations impose:
Serve a fixed penalty notice
Make a regulatory compliance order
CPD sanctions
Refer the matter to the disciplinary panel for consideration
What are the levels of members?
Fellow of RICS
Member of RICS
Associate Member of RICS
Student Member
How do you become a Fellow of the RICS?
1) 5 or more years of service
2) Academic achievement
3) Professional achievement
4) Leadership role
5) Raise the profile of the RICS
What is informed consent
Consent given willingly by a party who may be affected by a Conflict of Interest, that party having demonstrated to the RICS member working independently or within a non-regulated firm or regulated firm or member
Why do you want to become a member of RICS ?
• Recognition • Uphold professional standards • Better employment prospects • Be part of the global network Continuing learning development
- How do you promote trust in the profession?
Acting responsibly in my professional and personal life.
What is money laundering?
Is the process of making illegally-gained proceeds (i.e., “dirty money”) appear legal
A client offers tickets for Twickenham, what would be your response ?
Depends on whether it is furthering a working relationship or it is being offered in a time whether tendering in being undertaken. My default position would be to decline if I felt it compromises my ability to make an informed decision without compulsion.
What do you know about the rules for members, and how does it affect you?
Ethical behavior- I avoid conflicts of interest and act responsibly inside and outside of work.
Competence- I carry out my work with due skill and care and in line with technical standards.
Service- I provide a good professional service to my internal clients and assist where necessary.
CPD- I have carried out the required amount CPD
Solvency- I keep my professional and personal finances appropriately managed.
How have you managed conflicts of interest?
I noticed a conflict by a consultant and asked that they provide a letter confirming how they will deal with that conflict and provide an information barrier.
What is the fine for the late submission of CPD?
3 Strike system:
First time a Fixed Penalty caution
Second time- £150
Third breach- Disciplinary panel
What is the level on uninsured excess ?
Up to 500k- The greater of 2.5% of sum insured or £10K
Over £500k- 2.5% of the sum insured
When was the new Professional indemnity insurance requirements effective from?
1st of April 2021
Do you need to cover past and current employees?
Yes
How long do you need to have run off cover
The requirement is for a limit of £1,000,000 in all for a period of six years from the expiry date of the policy in force at the time of cessation. RICS’ minimum policy wording will automatically provide this coverage.
If you cant get run off cover, what options do you have
Run off pool
What is new on the Professional indemnity insurance requirements
Fire safety exclusions
Can members use the RICS Logo
Yes, only MRICS/FRICS and AssocRICS on personal website, business cards and email signatures.
What is the benefits of being regulated by RICS
It shows that your firm:
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 is a guidance note?
These are documents that provide users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
What is a professional statement?
A document that provides members with mandatory requirements or a rule that a member or firm is expected to adhere to.
This term also encompasses practice statements, conflict of interest 2017, Red Book professional standards, global valuation practice statements, regulatory rules, RICS Rules of Conduct and government codes of practice.
it sets out the requirements of practice for RICS members and firms that are regulated by RICS
What are the 9 protected characteristics under the Equality Act 2010
age disability gender reassignment marriage and civil partnership pregnancy and maternity race religion or belief sex sexual orientation
What is the role of a contact officer?
Main point of contact and the person authorised by the firm to submit the firms annual return ?
What do you need to do to close down a practice?
Inform the RICS Keep clients informed Return client monies within your firm Inform insurers (Run off cover for 6 years) Retain files for 6 years minimum
You are in the pub this evening. And good friend of yours comes along and says, Hey, (Name), I’ve got this project I want you to look at but I’d like you to look at it outside or outside the firm. You know, a bit and could you do it on mate right basis cash. How do you respond to that?
I would advise him, I was very flattered that he’s thought of me for this and I would certainly be delighted to look after the project for him.
But it would need to be through my employer for several reasons.
Our RICS will conduct require that everything is carried out as a proper instruction, so that there are adequate PI cover and protections in place.
number two, I under a duty of care, I’m under quite rightly under a duty of a contractual obligation as well as a moral one to my employer, that I don’t take on working competition to them alongside the main business.
And third and finally, if he’s offering to pay me in cash, that’s a matter of income fraud, as well because we wouldn’t be paying tax on it and potentially money laundering.
So for all my reasons, I would have to direct him very politely to come and speak to me in the office on Monday morning rather than talk to me in the pub on Friday night.
What are the UK GDPR seven key principles?
(L) Lawfulness, fairness and transparency.
(P) Purpose limitation.
(D) Data minimisation.
(A) Accuracy.
(I) Integrity and confidentiality (security)
(S) Storage limitation.
(A) Accountability.
