Ethics, Rules of Conduct and Professionalism Flashcards
1
Q
What is the RICS motto?
A
Est Modus in Rebus - There is measure in all things.
2
Q
What is the RICS mission statement?
A
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
3
Q
When was the RICS founded?
A
1868
4
Q
What is the structure of RICS?
A
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.
5
Q
How many Bye-Laws are there?
A
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
6
Q
What is the role of the governing council?
A
To manage and agree strategy for the RICS
7
Q
In terms of the RICS structure, what sits beneath the governing council?
A
Regulatory Board, audit committee and management board
8
Q
What are the RICS’ 5 principles of better regulation?
A
Proportionality Accountability Consistency Targeting Transparency
9
Q
What is the difference between RICS ethics and rules?
A
Ethics are a set of moral values while rules of conduct are a framework that we work to.
10
Q
A
11
Q
What are the new RICS Rules of Conduct for Members and Firms (effective from Feb 22)?
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.
12
Q
What were the key reasons for changing the Rules of Conduct in Feb 22?
A
- A simpler structure
- Clear examples
- Focus on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges
13
Q
What are the RICS professional obligations for RICS members? (3)
A
- 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.
14
Q
What are the RICS professional obligations for RICS firms? (7)
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.
15
Q
What steps would you need to take when setting up in Practice?
A
- 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
16
Q
Would you accept a gift or offer of hospitality from someone in a work capacity?
A
- 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
17
Q
When is it acceptable to accept a gift? And what steps would you take to accept the gift?
A
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)
18
Q
What steps must you take for the handling of clients money?
A
- 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
19
Q
Why does the RICS have Rules of Conduct?
A
- 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.
20
Q
What must a complaints handling procedure include?
A
- 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
21
Q
How would you deal with a situation such as a friend who asks you to provide them with QS advice?
A
- 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
22
Q
What does PII stand for?
A
Professional Indemnity Insurance
23
Q
What is the purpose of PII?
A
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
24
Q
What benefits does it provide for the professional?
A
- The professional is protected from financial loss.
- Does not have to meet the claim from their own assets and resources
25
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.
26
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
27
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
28
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
29
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
30
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
31
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.
32
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
33
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
34
When was the Royal Charter established?
1881
Created in 1868, Royal Charter granted in 1881
35
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
36
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
37
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.
38
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.
39
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
40
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.
41
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
42
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
43
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
44
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.
45
46
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
47
What is your CPD strategy
I meet with my manage twice a year to review my career development plan and objectives
- build my CPD strategy around these objectives, current topics and personal interests
- my main objectives this year are continuing my learning on net zero carbon, sustainable construction and real estate investment.
48
Why do you want to become chartered?
- I 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 my clients.
▪︎I know the RICS designation if highly valued by clients and will further my career development and opportunities.
▪︎I am committed to life long learning, professional and personal improvement and believe the RICS will support me in achieving this.
49
What is the purpose of the RICS?
The RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure.
The work of RICS professionals is hugely varied and includes:
- Providing best practice guidance to industry professionals and governments
- Influence best practice in industry working policies
- Protecting consumers and businesses
- Developing assets in the built envr so they are fit for future generations
50
How did the RICS Conduct, Rules, Ethics and Professional Practice webinar expand develop your knowledge? What did you learn?
RICS structure
```
RICS structure
Professional standards and guidance
Rules for conduct (and how these changed in Feb 2022)
Relevant legislation
Ethics
```
51
What happens if a member contravenes the Rules?
Penalties - e.g. caution, fine, conditions, removal of registration, expulsion
52
What is the document status of professional statements? What are they?
Mandatory requirements for RICS members and regulated firms; sets behavioural, competence or technical.
• Examples:
○ Client Money Handling (2019)
○ Conflict of Interest (2017)
○ Countering Bribery and Corruption, Money Laundering and Terrorist Financing (2019)
53
What are guidance notes? Have you got some examples?
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
Examples:
Management of Risk (2016)
§ Risk identification and quantification techniques
Surveying Safely: H&S principles for property professionals (2019)
§ RICS regulated firms must ensure they provide:
□ A safe working environment
□ Safe work equipment
□ Safe systems of work
□ Competent staff
§New safe person concept - each individual assumes individual behaviours responsibility for themselves and those around them.
Complaints Handling (2016)
54
What is the difference between a professional statement and a guidance note?
Professional statements are mandatory for all RICS members and firms; whereas guidance notes are recommendations for good practice.
55
What is the H&S at work act 1974?
- Primary piece of legislation that governs health & safety in the workplace across the UK.
- Places a duty upon employers to ensure reasonable safety of employees and places a duty on employees to ensure the H&S of others who might be affected by their works.
- Granted power to ministers to create secondary legislation.
56
How does this impact your role as a PM?
- CDM Regulations 2015
○ Promotes good management and common sense
○ Places responsibilities on those best placed to deal with H&S duties
○ Client duties - appoint other duty holders (PD, PC), ensure time & resource is sufficient, F10, ensure info & welfare provided, ensure PD prepares H&S file
• During design - work to building regulations (which sets minimum standards to protect H&S of building users by ensuring design and construction complies with set of standards
• Construction - construction phase plan, RAMS, site inductions, inspections
57
Give an example of when you've conducted yourself in a professional manner?
* I demonstrate a high standard of service and act in a trustworthy manner when appointing consultants. I clearly communicate and document the scopes of services and fees to the client.
* I act with integrity and deliver a high standard of service when leading on the comms work stream on the Whitechapel project
* I act in an ethical manner when managing my project budgets. I ensure there are audit trails for payments, I manage client expectations and ensure they are aware of the services they are paying for and when they are expected to make payments based on project progress and deliverables.
58
What was the gift you received?
I received a voucher for an afternoon tea from my comms consultant. I reviewed my employers policy to decline the gift on the basis of how it would be perceived by others.
59
What is your company's gift policy?
• BD director approval required for entertaining business contracts over £100
• Approval required for being entertained at over £50 and MD if over £1,000.
• Offering / accepting gifts from government is prohibited
Any Christmas gifts are to be shared with the rest of the company.
60
What is the RICS gift policy?
• See Countering bribery, corruption, money laundering and terrorist financing professional statement
• RICS regulated firms must have a written policy on anti-bribery and corruption and encourage transparency by implementing a register. Clear guidance must be provided.
• RICS members must declare items to their employers
• Would need to consider:
○ Bribery Act (2010) - key piece of legislation.
○ My firms policy on gifts and hospitality
○ I would then use my professional objectivity, openness and transparency
○ Proportionality
○ Tax implications and money laundering Employment contract details
61
What RICS guidance could you refer to when considering whether you can accept a gift?
Countering bribery, corruption, money laundering and terrorist financing professional statement.
62
Tell me about how you procured consultants on Whitechapel?
I ensured for each consultant appointment, 3 parties were invited to tender based on the same information.
From the request to proposal through to recommendation and appointment, I kept a clear audit trail.
63
On Whitechapel, why did you go out to tender to a minimum of 3 parties?
To meet the client requirements to achieve best value for money through competition.
64
Why is an audit trail important to have?
* Important to document that procurement process has been transparent and fair
* In case a dispute arose - useful to have a full audit trail and be able to demonstrate how the decision was made
65
Tell me about recommending a specialist on Fitzroy Street
On Fitzroy Street, the design included an extension of two floors to part of the building. The building was surrounded by several properties therefore I recommended to the client that a rights of light review was carried out by a specialist rights of light lawyer.
66
How did you maintain the confidential nature of your client and the project? (Whitechapel)
I reviewed various reports that were due to be issued in the disposal data room for bidders to ensure no sensitive information such as costs were included. If there were, I would redact the information.
During public consultation, I prepared presentations for local stakeholders which I made sure only included information that was already in the public domain.
67
What protocols did you establish for maintaining client confidentiality on the Whitechapel project?
I set up a data sharing system and provided access only to relevant team members. I also received notifications to show me who uploaded / downloaded information to monitor the access.
I produced a communications and stakeholder strategy which clearly outlined key personnel and stakeholders, roles & responsibilities, processes for approvals and information in circulation.
68
Examples of tender queries on Fitzroy Street?
Queries around:
- Consultant novation - Which consultants and when?
- BREEAM/ WELL
- Surveys i.e. air tightness testing and party wall
69
How did you ensure the tendering process for Fitzroy was fair?
- I worked with the cost consultant to compile the tender documentation.
- Each party was issued the same information at the same time, with the same deadlines
- Each tender return was scored against the same criteria agreed with the client.
70
What the Royal charter?
* This means RICS has a seat on the privy council to advise the Crown (Her Majesties Government).
* Royal Charter requires members to promote the profession for the public benefit.
* Self-regulatory
* ‘Gold standard of excellence’
* RICS members need to think about ‘public benefit’ that is the Royal Charter difference.
71
How many members does the RICS have?
140k members
72
How do you become a member of the RICS?
* Demonstrate professional knowledge and skills
| * Understand and commit to RICS ethical standards
73
What is ethics?
Study of moral standards and how they affect conduct
74
What are the 4 levels of membership?
* FRICS - fellow
* MRICS - member (chartered qualification)
* AssocRICS - associate (ethics)
* Trainee / student memberTrainee / student member
75
Why do you want to be a member of the RICS?
* Be part of an institution that promotes the highest standards and ethics within our industry
* Recognition as a professional
* Broaden my network and CPD opportunities
76
What bodies are in the RICS? What are their purposes?
* RICS regulation confidential hotline - can assist with ethical issues
* Matrics - young / new members support group
* LionHeart - charity to support members i.e. financial support, counselling etc
77
How many professional groups are there within the RICS? Can you give examples?
* 18 professional group boards.
* Offers networking, market insights, technical guidance etc
* Examples such as project management group, or dispute resolution group
78
When do you become eligible to be a RICS firm?
* The Firm provides surveying services to the public
| * At least 25% of the Firm’s Principals are RICS Members
79
When is it mandatory to become a RICS firm?
* The firm provides surveying services to the public
* The firm is operating in regulated area A
* At least 50% of the firm's principals are RICS members
* RICS Members who are also Principals of a Firm that is required to register under Rule 3 must take all reasonable steps within their power to ensure that an appropriate application to register for regulation by RICS is made on behalf of the Firm.
80
How does the RICS monitor a firm?
* Annual returns
* Client accounts
* Correspondence
* Regulation board ensures members follow the rules
81
Strength of 'Regulated by RICS'?
* Practise to globally recognised standards
* Behave ethically and act with integrity and honesty
* Have the required skills and competencies to do the job
* Manage conflicts of interest transparently
* Safeguard the security of client money
* Manage its finances appropriately
* Provide adequate and appropriate indemnity for its work
* Handle complaints and disputes fairly
82
What is M3's CHP?
* Inform line manager
* Acknowledge complaint within 5 days
* Formally respond within 14-18 days
* Formally record and investigate
* Internal lessons learnt held thereafter
83
What are the principles of UK law?
* Statutory legislation - acts of parliament, regulation, byelaws
* Common law - derived from previous judicial decisions of courts rather than written legislation
* Criminal law - offence against society - the crown prosecutes those accused of breaking the law
* Civil law - offence against an individual or other private party e.g. family matters, contracts, negligence etc
* Case law - relevant cases used to help a court make a judicial decision
84
Examples of legislation?
* Health & Safety at Work Act 1974
* Equality Act 2010
* Bribery Act 2010 -
* Data Protection Act 2018 (GDPR)
85
Examples of regulation?
* Construction (Design and Management) Regulations 2015
* COSHH (Control of Substances Hazardous to Health) 2002
* Money laundering, terrorist financing and transfer of funds regulations (2017) -
86
Tell me about the Money laundering, terrorist financing and transfer of funds regulation (2017)
- Enacted on 26 June 2017 and introduced additional requirements for firms who are within the regulated sector for money laundering purposes, including the obligation to conduct additional customer due diligence
- Put in place more due diligence e.g. stringent ID checks, cannot accept large cash payments (over 10,000 euros), firms must have a money laundering officer, keep up to date records and perform AML checks on clients
87
What do you know about the Levitt Review?
* Alison Levitt QC carried out a review into RICS governance in 2021. She made several recommendations in her report. The RICS has accepted the criticism and adopted all the recommendations.
* The review was necessary because of serious concerns over a financial audit and the unfair treatment of 4 non-executive members of Governing Council who raised the issue.
* This was a bad time for RICS with significant reputational damage and most members feel sad about it. Ethics are very important to us all and the institution has admitted falling short.
* The process has started to ‘build back better’ and the future is much brighter.
88
What is professional indemnity insurance? (see RICS PI Insurance Requirements)
* Mandatory for surveyors working in practice
* Protects surveyors, clients and third parties against negligence claims where there is a duty of care breached and a claim for damages arises.
* Buy from specialist insurer recommended by RICS
* Assigned Risks Pool – short term cover provided by RICS for regulated members who are unable to gain cover elsewhere.
* On each claim basis
* Retroactive claims made basis
* Run off cover (6 years)
* Full civil liability
89
What did the April 2021 updates on PI Insurance include?
* Fire safety cover now required
* Cyber cover
* Assigned risk pool offered to those who can't get cover
* Run off requirement - 6 years after closure
90
What is an assigned risk pool (ARP)?
PI Insurance offer for RICS firms who can't get PI cover
91
Who benefits from PI?
The client, the professional (i.e. the surveyor) and third parties
92
What is a claims made basis policy?
Each claim against PI is covered up to the value of what's insured. You’re covered for every claim made. If there's been a breach, and there are multiple claims, you have the PI each time you claim. There is no aggregate cap.
93
What is run off cover?
Covers the historic liabilities of a business after it ceases to trade
94
What is minimum wording?
Minimum requirements for insurance
95
What would you do if a client gave you a bag of cash?
* Enquire into where it came from (due diligence) - audit trail
* Separate bank account - track transfers
* Be aware of money laundering
* Take advice from seniors
* Consideration of Bribery Act 2010
96
What do you need if you set up a practice tomorrow?
• Notify the RICS that I'm starting a business
• Register for regulation as a firm
• Obtain insurances (PI Insurance, Public Liability)
• Meet the requirements of the Rules of Conduct for Firms
○ H&S policy, equal opportunities, CHP
○ Set up Locum
• Register on companies house
97
Is it appropriate to give advice to a friend?
* Not unless they are paying professional fees for your services as your insurances will not cover any advice you give.
* Give names of other companies your friend could use
* Work within your competence
98
What are the five principles of RICS regulation? (PACTT)
* Proportionality - solutions to non-compliance with the rules of conduct should be proportional to the risk/costs
* Accountability - RICS regulators must be able to justify their decision
* Consistency - rules should be implemented fairly and consistently by regulators
* Targeting - RICS regulators should focus on key problems
* Transparency- RICS regulators should clearly define and communicate regulations to members and firms
99
What is the RICS decision tree?
* Sufficient facts?
* Legal?
* In line with RICS global professional and ethical standards?
* Consulted with appropriate people?
* Clear reasoning for your decision?
* Content with actions being public?
100
What arrangements would you need for incapacity of sole practitioner (locum)?
```
A locum agreement
Ensure cover for:
○ Long term absence from illness
○ Death
○ Long term holidays (over a month)
○ Unseen or avoidable events
○ Can be another RICS member or another suitably qualified professional e.g. a solicitor
```
101
How is the RICS structured?
Privy Council – Grants and awards Royal Charter
Governing Council – Sets Institutions direction and strategy
Regulatory Board – Reports to Governing Council
Management Board – Day to day performance and delivery of business plan
Knowledge Board – Finance Board – World Regional Boards – Remuneration Committee
102
Explain key points of acting with integrity.
Be honest and straightforward in all that you do. This is one of our five professional and ethical standards.
- Being open and transparent in the way you work.
- Respecting confidential information of your clients and potential clients.
- Not allowing bias, conflict of interest to override your professional judgements and obligations.
- Not offering or accepting gifts, hospitality or services, which might suggest an improper obligation.
103
Explain key points of providing a high standard of service
Always ensure your client, or others to whom you have a professional responsibility, receive the best possible advice, support or performance of the terms of engagement you have agreed to. This is one of our five professional and ethical standards.
This standard includes, but is not limited to, the following behaviours or actions:
- Be clear about what service your client wants and the service you are providing.
- Act within your scope of competence
- Be transparent about fees and any other costs or payments such as referral fees or commissions.
- Communicate with your client in a way that will allow them to make informed decisions
104
Explain key points of acting in a way that promotes trust in the profession.
Act in a manner, both in your professional life and private life, to promote you, your firm or the organisation you work for in a professional and positive way. This is one of our five professional and ethical standards.
This standard includes, but is not limited to, the following behaviours or actions:
- Promoting what you and the profession stand for - the highest standards globally
- Understanding that being a professional is more than just about how you behave at work; it's also about how you behave in your private life
- Fulfilling your obligations. Doing what you say you will
- Always trying to meet the spirit of your professional standards and not just the letter of the standards
105
Explain key points of treating others with respect.
Treat everyone with courtesy, politeness and respect and consider cultural sensitivities and business practices.
106
Explain key points of taking responsibility.
Be accountable for all your actions - don't blame others if things go wrong, and if you suspect something isn't right, be prepared to take action.
107
What guidance has been published that covers the area of conflicts of interest?
The RICS Conflicts of Interest professional standard and guidance note.
A conflict of interest is anything that impedes or might be perceived to impede an individual's or firm's ability to act impartially and in the best interest of a client.
A conflict of interest can cast doubt on your integrity; it can also have a damaging effect on your firm and the profession as a whole.
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What are the different types of conflict?
Party Conflict - Conflicted by a situation by owing a duty to another client in relation to same professional assignment
Own Interest Conflict - Interests of a client in a professional assignment conflicts with the interests of that same RICS member
Confidential Information Conflict - to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.
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What are the steps required for closing down a practice?
1. Inform the RICS and your clients
2. Inform your clients at earliest opportunity and hand over arrangements made to the new firm
3. Return money from clients accounts
4. Inform insurers and maintain minimum 6 years run off cover, minimum £250k cover – RICS recommend 15 years cover
5. Retain client files for minimum 6 years
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What do you know about the Bribery Act
There are four offences under the Bribery Act 2010:
1. Giving a bribe
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery
Jurisdiction
The Act covers both private and public bodies.
UK courts have jurisdiction over bribery outside the UK where the person committing the offence is a British national.
Any company that carries on business in the UK will be subject to the failure to a prevent bribery offence in relation to conduct that occurs outside the UK.
Adequate procedures to prevent bribery
The UK MoJ published a guide on compliance with the Act including six principles of adequate procedures to prevent bribery:
1. Proportionate procedures – the procedures adopted should be proportionate to the risk faced.
2. Top-level commitment – the company should adopt a culture of zero tolerance through a commitment by senior management.
3. Risk assessment – the company should identify its bribery risks and prioritise its actions in high risk areas.
4. Due diligence – the company should take appropriate care when entering into relationships or markets with a risk of bribery.
5. Communication – the company’s policy should be clearly communicated to all relevant parties, supported by appropriate training and "speak up" procedures.
6. Monitoring and review – the procedures put in place should be reviewed and updated as the company’s risks change over time.
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What procedures do you adopt on the subject of giving and receiving hospitality? (Follow-up questions – what is acceptable/unacceptable)
Review my company policy in the first instance.
As with conflicts of interest, gifts and hospitality should not be accepted or offered if they are likely to compromise you or your firm's impartiality or integrity, or if this gives the impression of doing so.
Hospitality, promotional or other business expenditure which seeks to genuinely promote and improve the image of your firm or organisation, in order to present its products and services, is an acceptable and key part of doing business.
In making a decision about whether to accept or provide gifts or hospitality, the following questions may provide a useful starting point:
1. What is the value of the gift or hospitality?
2. Is the gift or hospitality reasonable and proportionate?
The Bribery Act 2010 introduces a corporate criminal offence of failing to prevent bribery. It also brings existing laws on bribery together. It came into force on 1 July 2011.
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Have you ever advised a friend or neighbour on a construction matter? If so what would your response be?
I haven’t, but my response would be to contact my office during working hours, to ensure appropriate terms of business are in place, especially considering PII.
I would also advise that they would be treated like any other client.
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What advice would you give a client wishing to pay you in cash?
You can only accept cash payments of 10,000 euros or less, in accordance with Money Laundering Regulations 2017.
However, in line with the RICS Ethical standard of acting with integrity, it is best practice to ask for bacs or direct debit so then the onus is on the bank to determine where the money has come from.
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What level of PII would you advise having in place if you were to start up as a sole practitioner Chartered Surveyor? How would that alter as you grew your business?
You will need to buy a minimum level of indemnity and your firm’s turnover in the previous year (or an estimate if you’re a new firm) will be a factor in finding the right level.
You should consult an insurance broker.
They will be able to offer guidance on appropriate limits and excesses and they will be able to explain the nature of the cover provided under the RICS minimum terms.
Using only turnover as a guide, the minimum level of indemnity cover you will require is:
£100k or less = £250k PI
£100,001 - £200k = £500k PI
£200,001 and above = £1m PI
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What advice would you give a client about how you could look after their money?
General
- A Principal or appropriately qualified individual oversees the client accounting function
- Accounting systems and client data are securely controlled and protected
- There is adequate cover for holiday and long term absence
Client Bank Account
- We hold clients’ money in one or more client bank accounts separate from all other monies.
- Client money should be available on demand
- Systems provides details of all money paid into and from client account
- Current balances are always available
- Overdrawn balances are prevented
Controls over receipt of money
- Only Principle opens incoming post
- All clients’ money should be lodged within 3 days of receipt
- Record kept of all clients’ money received by post
Controls over payment of money
- Adequate authorisation and supervision procedures in place for payments made
- Cash payments are avoided
- Blank cheques are not signed
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What else would you advise having in place as a sole practitioner?
- LOCUM - A firm which is a sole practitioner shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absence.
A locum is a person who will stand in for you while you are away from the office, could be:
- Solicitor
- Chartered PM
- Accountant
- Arrange for PI insurance, probably £250,000 cover required
- Set up complaints policy – ensure a third party independent procedure is available
