Ethics, Rules of Conduct and Professionalism Flashcards
What is the RICS motto?
Est Modus in Rebus - There is measure in all things.
What is the RICS mission statement?
To qualify and equip our professionals to the highest standard
To promote and enforce standards
To lead solutions to the major challenges facing the built environment through professional expertise
When was the RICS founded?
1868
What is the structure of RICS?
The present structure was created by the Agenda for Change 1998 - the need to evolve to meet the needs of its international member base.
Royal Charter was granted by the Privy Council — Profession is self-regulated, internally monitored and inspected. Not regulated by Government.
Bye-Laws set out the governance of the institution.
How many Bye-Laws are there?
10
1 - Application & definitions 2 - Membership & registration 3 - Designations 4 - Contributions to funds 5 - Conduct 6 - Governing Council, Officers & Staff 7 - Subordinate boards, committees and groups 8 - Procedure for General meetings 9 - Accounts and audit 10 - General
What is the role of the governing council?
To manage and agree strategy for the RICS
In terms of the RICS structure, what sits beneath the governing council?
Regulatory Board, audit committee and management board
What are the RICS’ 5 principles of better regulation?
Proportionality Accountability Consistency Targeting Transparency
What is the difference between RICS ethics and rules?
Ethics are a set of moral values while rules of conduct are a framework that we work to.
What are the new RICS Rules of Conduct for Members and Firms (effective from Feb 22)?
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 were the key reasons for changing the Rules of Conduct in Feb 22?
- A simpler structure
- Clear examples
- Focus on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges
What are the RICS professional obligations for RICS members? (3)
- Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
- 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.
What are the RICS professional obligations for RICS firms? (7)
- 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 steps would you need to take when setting up in Practice?
- Inform RICS
- Appoint a contact officer
- register with RICS for regulation
- arrange PII
- Set up client account for handling client money
- set up a CHP
- set up staff training and CPD
Would you accept a gift or offer of hospitality from someone in a work capacity?
- Gifts, hospitality and promotional activity is generally acceptable and considered a part of doing business. However it is linked to the Bribery Act 2010.
- Act also defines acceptable gift and hospitality
- Reasonable and proportionate
- Includes; modest and occasional meals, sport and cultural events
- Must not be lavish or frequent
When is it acceptable to accept a gift? And what steps would you take to accept the gift?
If it is of nominal value, offered openly and must not be regular, cash or to influence decisions
Actions
- Be open and transparent
- Keep records (Gift register in excess of £100)
- Consideration (value, timing, proportionate, giver, receiver)
What steps must you take for the handling of clients money?
- Clients must always have access to funds
- Client money must be kept separate and clearly identifiable
- Include ‘Client’ in account name
- Interest on the account must be agreed with the client
- Maintain client ledger or running balance of any transactions
- agree the terms and advise client on bank details
- must not be overdrawn
Why does the RICS have Rules of Conduct?
- To provide a framework that we can all work to and so the client knows they are getting a set level of service
- As well as being an important tool for the Institution, the Rules of Conduct are also a useful professional guide for individual institution members.
What must a complaints handling procedure include?
- RICS provide a model form
- Redress mechanism
- Details issued to client with the Terms of Business
- Must be clear, quick, transparent and impartial and free of charge
- Names and contact details of the nominated investigating person must be stated
- The complaint must be investigated in 28 days (7 days to acknowledge, 21 to respond)
- All complaints, their progress and outcomes must be recorded
- Note the need to advise PI insurers of a complaint
- Must have 2 stages minimum:
1) consideration of the complaint by a senior member of the firm
2) If not resolved, referred to an independent third party with the authority to award redress
How would you deal with a situation such as a friend who asks you to provide them with QS advice?
- I could not offer advice on my own without PI insurance
- If I did have my own PI insurance I would ensure that the information given was subject to the thorough checking process given to all information prior to issue regardless of who it was
- Inform them they can contact you during work hours to discuss T&Cs of appointment
- If you are not comfortable acting for them, advise them to use the RICS “find a surveyor scheme”
- adhere to rules of conduct
What does PII stand for?
Professional Indemnity Insurance
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
What benefits does it provide for the professional?
- The professional is protected from financial loss.
- Does not have to meet the claim from their own assets and resources
What basis should PII be underwritten?
On a claims made basis
This means that is the insurance policy that is in place at the time the breach is discovered that is claimed under NOT the insurance policy in place when the breach was made.
How long should run off cover be in place?
- Depends on the type of contracts the professional has been involved with
- Usually 6 years if contract executed under hand
- 12 years if executed as a deed
What are the requirements regarding PI by the RICS?
- Must be made on an ‘each and every’ claim basis
- Gives min wording
- Sets our min levels of indemnity
- Sets out maximum levels of uninsured excess
- Run off cover must be in place for at least 6 years
- Should include cover for past and present employees, directors and partners
What are the minimum levels of indemnity? / How do you determine the level of PI cover?
- This depends on the firms 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 are 2022 updates on excess requirements?
For larger firms removed
smaller firms = 2.5% excess remains
No excess req’s for £10m turnover limit
What measures should be taken to try and avoid PI claims?
- Keep full and detailed records of meetings, conversations etc
- record recommendations and advice given
- use proper letters of engagement, scope of services and terms of engagement
- don’t advise on a specialism outside of your field of expertise
- Use RICS guideline
- Avoid poor management and excessive workloads
If you put together a fee proposal, but a couple of months into the job you realise that you have under forecasted your resources, would you go back to the client and ask for more money?
- If project requirements (services, scope, value) have
increased, then would go back to client for more fees - But if remained the same, it is a mistake so deal with it and get it right next time.
- Do not reduce level of service you offered originally.
What are the continuous professional development (CPD) requirements?
- 20 hours min
- 10 hours must be formal (verifiable learning outcomes)
- Record online (or via app)
- Members must maintain a relevant and current understanding of RICS professional and ethical standards - every 3 years
Who is the president of the RICS?
President – Clement Lau
President elect – Anne Gray
Acting Chief Executive – Richard Collins
Took up office 2 months early in Oct 21 following the outcome of the Levitt Review into RICS governance
When was the Royal Charter established?
1881
Created in 1868, Royal Charter granted in 1881
If you were bidding for work and a client approached you and said you can have the job but you need to beat the current best price of a competitor of £12,000, what would you say?
- Unfair competition
- not acting with integrity
- not treating other surveying firms with respect
- can you offer the required level of service for a reduced fee?
- devaluing the profession
- not a sustainable way to operate
- this is a form of a bribe
- business should not be conducted in this manner
What is a consent order / regulatory compliance order?
A Regulatory Compliance Order is an agreement between RICS and a Regulated Member that they are liable for disciplinary action (a Regulated Member is and RICS professional or regulated firm). 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 is a fixed penalty?
A fixed penalty is an administrative fine and/or caution issued by the RICS when a member fails to provide us with information that the RICS have requested.
Any fixed penalty issued and not rescinded will remain on a regulated members record for a defined period.
What are the principles of the Bribery Act (2010)?
- Bribery is defined as ‘The offering, receiving, giving or soliciting of something of value for the purpose of influencing the action of an official in the discharge of his or her legal duties.’
- The act only applies to the bribery of local officials
- UK companies and foreign companies operating in the UK have the duty of having corporate measures in place to prevent bribery and have in place control measures. Companies have to pay a fine if they don’t
- Individuals can receive a combination of a fine and imprisonment up to 10 years.
What are the principles of GDPR (General Data Protection Regulation)?
- Lawfulness, fairness and transparency
- Purpose limitation
- Data minimisation
- Accuracy
- Storage limitation
- Integrity and confidentiality (security)
- Accountability
What are the principles of money laundering regulations 2017?
The MLR 2017 sets out the additional obligations of private sector firms working in areas of higher money laundering risk.
They aim to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach.
Can you tell me about a piece of CPD you have done recently?
Example (1)
Formal CPD presentation
Learning objectives - on how building MEP systems work
Learning outcome - developed my understanding of different MEP systems and noted key considerations when designing and constructing a building.
Example (2)
Formal CPD
Learning objective - Business planning day with BDO
Learning outcome - Company wide workshop which explored M3’s business plan including a review of our mission statement and vision for the business
What is the difference between formal and informal CPD?
Formal: web based training with structured assessment, formal seminars, providing training to others where research and preparation is required.
Informal: private reading, internal CPD’s, shadowing /
mentoring trainee
How will you record your CPD and return this to the RICS?
Via the RICS CPD app
I’ll record the type of CPD, date, subject area, number of hours, learning objective and outcome
What is on the cover of the latest copy of Modus?
July 22
One article is Clement Lau’s commentary on the Bichard Review as ‘an opportunity for change’.
Mentions the emphasis on public interest and members’ leadership of the institution, regulation, inclusion, sustainability, engagement and future professional cohorts.
How do you keep up to date with current affairs and topical issues in the industry?
- I am on the mailing list for several CPD providers ( Systecs , Aecom
- My employer send a monthly digests of the relevant press and articles of interest
- Exchange of information with colleagues.
- RICS website and journals
- Regular web search on key topics relevant to field of activities, such as Drainage Act, OJEU, Brexit Impact, Virus Outbreak, construction leadership methods of keeping sites going
