Ethics, Rules of Conduct and professionalism Flashcards
Tell me what you understand about conflicts 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
An existing relationship will result in reduced impartially and chartered surveyors have an obligation to make clients aware of this and if necessary decline work opportunities where a conflict of interest occurs.
Main Principles of Bribery Act 2010
1- Offences:
- Making a bribe
- Offering a Bribe
- Bribery of a foreign public official
2- 6 Principles of prevention:
- Proportionate procedures
- Top level commitment
- Risk assessments
- Due diligence
- Monitoring
- Review
- Facilitation of payment is illegal
Merret v Babb Case 2001
Wrong valuation to a property
Employees are personally liable for professional advice.
Employees will be particularly vulnerable if their firm or company:
is insolvent
has otherwise ceased trading and has no run-off cover
is under-insured and cannot meet the full claim
is unable to pay the excess due under the policy
is unable to obtain indemnity from their professional indemnity insurers as a result of a coverage dispute.
How could the conflict of interest be managed internally if two separate departments were working for the same client?
Notify the client
Measures that can be put in place:
- exclusivity of staff
- ensuring that there are separate communication lines
- Both teams to sign NDA
- Monitor the potential conflict and keep the client updated.
If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?
-STEPS
1- Check the clients understanding around the conflict of interest.
2- Make them aware of the potential for reduced impartiality
3- Seek a letter of instruction from the client to continue
4- Talk through working procedures to manage the conflict of interest
5- Agree formally in writing with the client.
You have received a formally complaint in writing from the client. At what point shoudl your firm notify the insurers?
Immediately as soon as the complaint has come trough. So is open and they are ware that a complaint might come through.
Are you aware of any guidance from the RICS in regards Professional Indemnity Insurance?
Professional indemnity insurance requirements
rics.org/regulation
Version 7 with effect from 1 May 2020
It depends on the firms turnover
Firm’s turnover in the preceding year Minimum limit of indemnity
£100,000 or less £250,000
£100,001 to £200,000 £500,000
£200,001 and above £1,000,000
Maximum level of uninsured excess (the part of each claim the firm must pay
itself)
Limit of indemnity Maximum uninsured excess
Up to and including £500,000 The greater of 2.5% of the sum insured,
or £10,000
Over £500,000 2.5% of the sum insured
Watt are the maximum levels of uninsured excess?
Depends on the level of indemnity
Maximum level of uninsured excess (the part of each claim the firm must pay
itself)
Limit of indemnity Maximum uninsured excess
Up to and including £500,000 The greater of 2.5% of the sum insured,
or £10,000
Over £500,000 2.5% of the sum insured
What sort of Insurances do Chartered Surveyors need to have?
_ Professional Indemnity covers
- Buildings insurance cover
- Employers Liability insurance
- Run off cover
What are the Main Principles of the Bribery Act 2010?
A) Offences:
- Making a bribe
- Receiving a Bribe
- Bribery of a foreign public official.
B) Applies to all UK Entities. Includes Associated Persons
C) 6 principles of preventions: 1- Proportionate Procedures 2 Top level commitment 3 Risk Assessments 4 Due diligence 5 Communications 6 Monitoring and review
Under the Bribery Act, under what circumstance is a facilitation payment permitted?
The only circumstance in which is OK to make a facilitation payment is when you are under duress.
i.e there is a real and present risk or danger to life, limb or liberty.
You are attending a Main Contractor organised business conference where it is announced that you have been randomly selected as a the winner of this months prize draw. It is an i-pad air, How would you act in this scenario?
- I would be uncomfortable accepting the prize in this scenario
- The price is of significant value and could be interpreted as a bribe
- Furthermore due to working on a project with the Main contractor at the time of this scenario. Accepting would have been highly inappropriate and could be interpreted as having affect on my business conduct.
- I would respectfully decline the prize and suggest that is made as a charitable donation to a charity of the main contractors choice.
I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this incident I would report it to my line manager.
You receive an invite to attend the theatre with some members of your project team but they dropped out due to illness at the last minutes, would you still attend?
- I will declare this hospitality on my companies gifts and hospitality register
- Assumed it was approved and I was authorised to attend
- I would need to decline the invite due to the project team dropping our , as this will bot be a genuine business event
- I will have to decline the hospitality at the Projects team expense
You are bidding for a project and the client advises that if you reduce your fee bid by £3000 you will be first place and win the tender, how would you advise the client?
- Unfair competition
- Not treating other with respect
- Not acting with integrity
- Unsustainable to undertake business in this manner
- Devaluation the profession
- Potentially need tor educe the scope to achieve same margin. Will affect the high standard of service
- This could be interpreted as a bribe
Decline the offer from the client.
A client takes you our for lunch after a business meeting, where they continue to discuss business. The bill for the luch comes at £200. What shoudl you do now?
- Lunch had a legitimate business purpose, so its fine to accept the hospitality
- but the client should have considered how £200 bill for a lunch could be perceived and have chosen a more modest restaurant
- Given the size of the bill, but me declared in the companies hospitality register and make my line manger aware immediately afterwards
- I will offer to reciprocate but ensure it is carried out in a more modesty manner.
