Ethics, Rules of Conduct and Professionalism Flashcards
How do RICS ensure that standards and quality are maintained in terms of both conduct and advice provided by chartered surveyors?
RICS has rules of conduct for members and firms.
Please give your opinion on why RICS have rules of conduct?
- Consistency of service and approach, maintaining professional standards, governance and regulation.
- Rules will help members to act in a professional capacity and to deliver a robust, ethical and proper service.
- Rules maintain and promote the usefulness of the profession for public advantage.
- Consistency - chartered professions work to the same rules and regulation.
- The public and RICS expect an MRICs to behave in line with the objectives of the charter and provide clients with the most appropriate advice for their circumstances.
What are the rules of conduct for members?
- Interpretation
Refers to full and non-chartered members
2. Communication RICS will communicate with Members by any of the following: - Post - Fax - E-mail - Telephone - In person
- Ethical behaviour
Members shall at all time act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with their professional obligations. - Competence
Members shall carry out their professional work with due skill, care and diligence with proper regard for the technical standards expected of them. - Service
Members shall carry out their professional work in a timely manner and with proper regard for the standards of service and customer care expected of them. - Continuing Professional Development (CPD)
Members shall comply with RICS’ requirements in respect of continuing professional development - Solvency
Members shall ensure that their personal and professional finances are managed appropriately. - Information to RICS
Members shall submit in a timely manner such information, in such form, as the Standards and Regulation Board may reasonably require. - Co-operation
Members shall co-operate fully with RICS Staff and any person appointed by the Regulatory Board.
What are the rules of conduct for firms?
- Interpretation
2. Communication RICS will communicate with Members by any of the following: - Post - Fax - E-mail - Telephone - In person
- Professional behaviour
A firm shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with its professional obligations. - 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
Firm shall carry out its professional work with expedition and with proper regard for standards of service and customer care expected of it. - Training and Continuing Professional Development (CPD)
A firm shall have in place the necessary procedures to ensure that all its staff are properly trained and competent to do their work. - Complaints handling
A firm shall operate a complaint handling procedure and maintain a compliance log. The complaints handling procedure must include an Alternative Dispute Resolution (ADR) mechanism that is approved by the Regulatory Board. - Client’s Money
A firm shall preserve the security of clients’ money entrusted to its care in the course of its practice or business. - Indemnity
A firm shall ensure that all previous and current professional work is covered by adequate and appropriate indemnity cover which meets the standards approved by the Regularity Board. - Advertising
A firm shall promote its professional services only in truthful and responsible manner. - Solvency
Firm shall ensure its finances are managed appropriately. - Arrangements to cover the incapacity of death of a sole practitioner
A firm which has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absences. - Use of designations
A firm registered for regulation must display on its business literature, in accordance with the Regulatory Board’s published policy on designations, a designation to denote that it is regulated by RICS. - Information to RICS
A Firm shall submit in a timely manner such information about its activities, in such a form, as the Regulatory Board may reasonably acquire. - Co-operation
A firm shall co-operate fully with RICS staff and any person appointed by the Regulatory Board.
You attend a work social event and witness two junior colleagues acting in a way that could bring the firm into disrepute. What should you do?
Try to speak to your colleagues immediately and address their actions formally in work.
RICS professional standards - what are the types of standards and what is their status?
Professional Statements:
These contain ‘musts’ - our mandatory requirements, along with details of regulatory interventions if these requirements are not met
Guidance Notes:
These contain ‘shoulds’ - non-mandatory requirements, but recommendations of best practice on undertaking given tasks.
Assessment of Professional Competence (APC):
These are the requirements and guidelines relating to entry into the profession
Data standards:
These ensure software programmes and technology can adopt RICS standards into their offering.
Why do we have guidance notes? Do you have to follow them?
Guidance notes outline best practice within the profession and provide advice to surveyors on how to complete certain activities. They should be followed; members should remain up to date to ensure they are competent. If there is ever a professional negligence claim and a member has not followed a guidance note, the courts may review these to determine whether the member has acted competently.
What is the RICS ‘Black Book’?
The ‘Black Book’ is suite of guidance notes that define good technical standards for quantity surveying and construction professionals.
What is the status of the professional statement? What sanctions may RICS take if you fail to apply it?
- The document provides members with mandatory requirements or a rule that a member or firm is expected to adhere to.
- It will say that member must do something to signify that it is mandatory. If you do not comply, you can be given a written warning as a caution or if the case is severe, you can be expelled from RICS membership.
What are the 5 ethical standards?
- Act with Integrity
- Always provide a high standard of service
- Act in a way promotes trust in the profession
- Treat others with respect
- Take responsibility
Can you explain how you act with integrity?
- Being trustworthy in all that I do
- Being open and transparent in the way I work
- Respecting confidential information
- Not taking advantage
- Not allowing bias, conflict of interest or the undue influence of others to override my decisions
- Not offering or accepting gifts, hospitality, or services, which might suggest an improper obligation
Can you explain how you take responsibility?
- Be accountable for all my actions
- Always act with skill, care and diligence
- Ensure an appropriate complaint handling procedure is in place in the event that somebody makes a complaint about me.
- If I think something is not right, I am prepared to respectfully challenge and raise the matter with colleagues.
Why must you act within your professional capabilities?
To ensure I do not advise my clients incorrectly which could lead to a complaint or claim of negligence.
Can you explain how you treat others with respect?
- I treat everyone with courtesy, politeness and respect.
- I’m always polite and considerate to clients, potential clients and everyone else.
- I never discriminate against anyone for any reason.
Can you explain how you provide a high standard of service?
- I always ensure my client, or others to whom you have a professional responsibility, receive the best possible advice, support, or performance of the terms of engagement I have agreed to.
- Acting within my scope of competence.
- Be transparent about fees and any other costs of payments such as referral fees or commissions.
- Communicate with my client in a way that will allow them to make informed decisions.
Can you explain how you promote trust in the profession?
- Understanding how my actions will affect others and the environment
- Fulfilling my obligations
- Always trying to meet the spirit of my professional standards and not just the letter of the standards
- Acting in a trustworthy manner in both my professional and private life
Explain what an individual should do to maintain a high ethical standard in their profession?
- Keep their own actions under review, inside and outside of work
- Maintain a level of knowledge and training appropriate to their area of work (laws, regulations, money laundering for example)
- Maintain CPD
- Follow advice given by professional bodies on ethical behaviour
- Help their own organisations to develop ethical ways of working
- Noting any unethical behaviours by others and address where appropriate
What should employers do to create an ethical environment?
- Establish confidential procedures for ‘whistle blowing’, independent of the normal chain of command.
- Include ethical evaluations into formal performance appraisals.
- Include ethical standards into employee hiring, employment contracts and training.
- Make sure there is adequate planning, training and ethical performance monitoring when implementing change.
- Become chartered with RICS.
- Promoting CPD in the relevant area.
What tools are available to help members make ethical decisions?
The “Decision Tree”.
Why is it important to act with integrity?
- I am representing both myself and the profession and want others to view me in the best possible way.
- Acting with integrity is also one of the 5 ethical standards.
What is the difference between ethics and integrity?
- Ethics are moral principals that govern a person’s behaviour or the conducting of an activity.
- Integrity is the quality of being honest and having strong moral principals.
Put simply, ethics looks at the big moral picture while integrity is focused on personal characteristics.
What sort of decision would you consult the tree about?
- The decision tree provides step-by-step practical advice on how to deal with any ethical issue that might face as a professional.
- You can take certain steps and ask questions to ensure that you deal with potentially difficult situations in an objective and measured manner.
What are the key areas where ethics are important?
Matters related to:
- Gifts, bribes, hospitality and inducements
- Equal opportunity, discrimination and sexual harassment
- Conflicts of interest
- Insider dealing, money laundering, disclosure of confidential information, financial transaction and fair competition.
- Whistle blowing in case of anyone raising an unethical issue.
- Copyright and ownership of files.
- Standards in advertising.
- Environmental protection, relations with local communities, political and social behaviour.
After receiving inside information about a competitor’s quote, you consider altering your terms to win a commission. You realise that you may be promising more than you can deliver. What are the key points you should consider?
- Potential conflict of interest (insider information of a competitor’s quote).
- Not working to the ethical standards by promising more that you can deliver (providing a high standard of service).
What preconditions does a firm need to meet to be “Regulated by RICS”?
- Offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services
- Have at least 25% principals ( a senior manager, partner, or owner), who are qualified RICS professionals (MRICS, FRICS, AssocRICS).
- Agree to observe and comply with RICS Rules of Conduct for Firms, including working to RICS standards.
Once a firm has been registered for regulation, what does the firm need to comply to?
- Comply with the Rules of Conduct for Firms.
- Act in accordance with the obligations set out in RICS’ Royal Charter and byelaws.
- Inform the Head of Regulation of any finding against it by any disciplinary or regulatory body, court, or statutory authority.
- Inform the Head of Regulation of any insolvency against the firm.
- Notify the Head of Regulation within seven days if there is a material change regarding the firm and provide full details.
What is a locum?
A firm which has sole principal (a sole practitioner or a sole director in a corporate practice) to have in place appropriate arrangements in the event that sole principal’s death or incapacity or other extended absences. A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to do the work.
What are the insurance requirements for RICS regulated firms?
RICS regulated firms have professional indemnity insurance (PII) that meets RICS minimum requirements. Alongside PII you will need:
- Public liability
- Buildings insurance
- Employer liability cover
- Directors and officers cover
- Contents insurance
- Business interruption insurance
What does CPD stand for?
Continued Professional Development.
