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APC QS 2022/23 > Ethics, Rules of Conduct and Professionalism > Flashcards

Ethics, Rules of Conduct and Professionalism Flashcards

1
Q

How do the RICS ensure standards of professional conduct and practice are upheld?

A
  • The RICS has rules of conduct
  • Rules of conduct apply to all members and firms regulated by RICS
  • They are based on principles of honesty, integrity, competence, service, respect and responsibility
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2
Q

What are the 5 rules of conduct for members and firms?

A

1) Members and firms must be honest, act with integrity and comply with their professional obligations including obligations to the RICS
2) Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
3) Members and firms must provide good quality diligent service
4) Members and firms must treat others with respect and encourage diversity and inclusion
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.

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3
Q

3 examples of behaviours to comply with rule 1 (act with integrity and professional obligations)

A

1) Do not take unfair advantage of others
2) Open and transparent with clients about their fees and services
3) Having effective processes to identify conflicts of interest

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4
Q

3 examples of behaviours to comply with rule 2 (maintain professional competence)

A

1) Only undertake work which you have the necessary knowledge, skills and resources for
2) Stay up to date with latest legislation, codes and other professional standars
3) Supervising employees undertaking work to ensure they have the necessary knowledge skills and resource

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5
Q

3 examples of behaviours to comply with rule 3 (good quality diligent service)

A

1) Understand a clients needs and objectives before accepting professional work
2) Communicate with clients clearly and in a way they can understand
3) Have effective QA processes in place

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6
Q

3 examples of behaviours to comply with rule 4 (treat with respect and diversity and inclusion)

A

1) Respect the rights of others and treat others with courtesy
2) Don’t bully vicitimise or harass anyone
3) Working cooperatively with others

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7
Q

3 examples of behaviours to comply with rule 5 (act in public interest, take responsibility)

A

1) Responding to complaints promptly, openly and professionally
2) Manage personal finances responsibly
3) Take appropriate action when they believe rules of conduct have been breached

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8
Q

Professional obligations for RICS members

A
  • Comply with CPD requirements
  • Cooperate with the RICS
  • Provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf
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9
Q

Professional obligations for RICS firms

A
  • Have a CHP which includes an approved ADR provider and maintain a complaints log
  • All current and previous work must be covered by an adequate PI cover that meets RICS standards
  • Make appropriate arrangements for professional work to continue in event of incapacity, death etc… (sole practitioners)
  • Cooperate with RICS
  • Provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf
  • Display on business literature a designation note that they are regulated by RICS
  • Report any matter that they are required to under the rules of registration for firms
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10
Q

What is the role of RICS?

A
  • Advancing the highest ethical and technical standards for professionals in land, property and the built environment
  • Protecting and providing benefits to consumers by enforcing standards and codes of best practice
  • Providing expert impartial advice to governments, businesses and the public
  • Equipping members with leading edge advice, market insight and professional training
  • Promoting RICS status and standards in key worldwide markets as the mark of property professionalism
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11
Q

What is the royal charter?

A

Awarded to the RICS in 1881 by Queen Victoria.

The royal charter requires RICS to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world.

Awards RICS independent legal personality and allows it to govern its own affairs.

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12
Q

Where are RICS HQ’s?

A

12 Great George St, Parliament Sq, London

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13
Q

What is RICS motto?

A

Est modus in rebus - there is measure in all things

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14
Q

What is lionheart?

A
  • Independent charity run by RICS professionals for RICS professionals
  • Services range from financial support to legal advice to counselling
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15
Q

Why do you want to be MRICS?

A
  • To be part of a global network of professionals and gain global recognition
  • Elite professional status, guidance, information and support
  • Being part of promoting the best practices in the profession
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16
Q

What is RICS matrics?

A

A division of RICS which supports new members entering the profession to help shape the future of surveying.

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17
Q

What is the role of the standards and regulation board?

A

Has responsibility for the strategy, policy and operational oversight of standards, entry and admission to the profession and regulatory functions of RICS

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18
Q

What is the RICS governance structure?

A

Privy council sits at the top, which grants awards and the royal charter

Beneath this is the governing council

Beneath the governing council there is;
- Standards and regulation board
- Management board
- Audit, risk assurance and finance committee
- Nominations and remuneration committee

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19
Q

What is the role of the governing council?

A

It is the highest governing body which sets global strategy and ensures the RICS meets its royal charter obligations.

Provides strategic oversight on requirements for entry into the profession, and the setting and enforcement of professional standards

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20
Q

Key people in RICS

A

President - Clement Lau
President Elect - Ann Gray
SVP - Tina Paillet
QS Chairman - Justin Sullivan

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21
Q

How much is membership?

A

£539/year
£354/year (newly qual)

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22
Q

What are professional groups? Give examples.

A

Breakdown of the technical professions within the surveying industry which provide technical advice across RICS and contribute to policy and strategy

QS, PM, BS, Valuation, Rural

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23
Q

What is modus?

A

A magazine publishes by the RICS that provides the latest news and views, expert advice and features spanning the surveying profession around the world.

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24
Q

Which RICS publications are mandatory? Which are best practice?

A

Mandatory:
- International standards
- Professional statements
- Codes of practice (where stated)

Best practice:
- Guidance notes
- Information papers

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25
Q

What is the RICS black book?

A

A suite of guidance notes that define good technical standards for quantity surveying and construction professionals

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26
Q

Explain how you act with integrity?

A

Being open and transparent, respecting confidential information, not allowing bias or conflicts of interest to influence my decisions

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27
Q

Explain how you take responsibility?

A

Being accountable for my actions, acting with the correct skill, care and diligence and raising issues where you believe something is not right

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28
Q

Explain how you treat others with respect?

A

Being polite and courteous, never discriminating against people and listening to others views

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29
Q

Explain how you provide a high standard of service?

A

Always ensure clients receive best advice and support, act within scope of competence and communicating in a way that suits specific clients

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30
Q

Explain how you can promote trust in the profession?

A

Fulfilling my professional obligations, acting in a trustworthy manner in both professional and private life.

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31
Q

What is the difference between ethics and integrity?

A

Ethics are moral principles that govern behaviours, integrity is the personal quality of having strong moral principles and values

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32
Q

What is the RICS ethics decision tree?

A

A guide that provides step by step practical advice on how to deal with any ethical issues you may face as a professional.

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33
Q

What are the principles of better regulation (PACTT)?

A

Proportionality - remedies proportional to risks
Accountability - regulators should be able to justify decisions to prove fairness.
Consistency - new regulations should take account of precedence and adopt common sense approach
Targeting - guidance/support adapted for needs of different groups and updated when necessary
Transparent - regulators should be honest, regulations should be clearly defined

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34
Q

When is a firm required to register for RICS regulation?

A
  • Provides surveying services to the public
  • Operates in UK
  • At least 50% of principals are RICS members
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35
Q

When is a firm eligible to register for RICS?

A
  • Provides surveying services to public
  • At least 25% of principals are RICS members
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36
Q

What is a locum?

A

A person appointed to step in where a sole practitioner is unable to work, i.e., death, illness.

Usually another chartered surveyor but can be another trusted professional such as a lawyer or an accountant

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37
Q

What is a locum?

A

A person appointed to step in where a sole practitioner is unable to work, i.e., death, illness.

Usually, another chartered surveyor but can be another trusted professional such as a lawyer or an accountant

They require to be covered by PI for work undertaken as locum

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38
Q

What are the CPD requirements for RICS members?

A

20 hours per year, at least 10 hours formal. 1 CPD on ethics every 3 years.

Logged on RICS CPD management system by 31st January each year.

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39
Q

Formal vs informal CPD?

A

Formal CPD is more structed and has a defined objective, e.g., a training course.

Informal is things such as private study or reading a magazine.

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40
Q

What is conduct unbefitting?

A

Behaviour that is disgraceful, dishonourable or liable to bring the profession into disrepute.

41
Q

You see somebody acting in a way that could bring your firm into disgrace, what do you do?

A

Speak with them immediately and take steps to prevent damage. The address their actions formally in working hours.

42
Q

Are you obliged to inform the RICS of conduct unbefitting?

A

No, but we are obliged to report anybody who has been convicted of a criminal offence that carries a custodial sentence on first conviction.

43
Q

What is a bribe?

A

An offering in exchange for an influence or action in return.

Dishonest, illegal and usually in the context of gaining a business advantage.

44
Q

When did the bribery act 2010 come into effect?

A

2011

45
Q

Offences under briber act?

A

Active: offering, promising or giving a bribe
Passive: requesting, agreeing to receive or accepting a bribe.
Corporate: failure to have appropriate systems in place to prevent a bribe from taking place
Bribery of a foreign public official to obtain, retain business or gain a business advantage.

46
Q

Can you extent hospitality in the promotion of business?

A

Yes but it must be declared to the company

47
Q

Who does the bribery act apply to?

A
  • UK citizens, residents and companies established under UK law whether operating in the UK or not
  • All companies doing business in the UK
  • Firms can be liable for bribery even if they are not aware of it
48
Q

Sanctions for committing bribery?

A
  • Individuals: up to 10 years imprisonment + unlimited fines
  • Companies can face unlimited fines, and directors can be disqualified and face prosecution
49
Q

G&T gifts/hosp policy

A
  • Anything accepted must be logged on gift register
  • £100 receiving, £250 giving limit
  • Never accept cash, vouchers, high value items
  • When giving or accepting hospitality the host must be present else it is a gift
50
Q

Contractor offers:
1) A pen
2) Lunch
3) Lunch before valuation

A

1) Accept and log on gift register
2) Accept as long as less than £100 value, log on gift register
3) Decline as it could be seen to impact on impartiality

51
Q

Client offers:
1) Concert as a project team
2) Concert for only you
3) Bottle of wine

A

1) Accept this is hospitality, log on gift register
2) Decline, could be seen to impact impartiality
3) Decline throughout the year, accept at Christmas (below £100) and log.

52
Q

What is a complaint?

A

An expression of dissatisfaction from a person to who the recipient of the complaint owes a duty of care

53
Q

What does the RICS guidance note state on complaints?

A

CHP Should be:
- Fit for purpose
- Made available to and understood by all staff
- Be shared with complainants/potential complainants
- Be regularly revied and updated
- Agreed with PI broker
- Provide independent redress scheme

Clients should be made aware of CHP at appointment.

Complaints be reviewed by senior/designated complaints handler

54
Q

What is G&T CHP?

A
  • Refer complaint to senior member of staff which is then referred to designated complaints handler
  • Complaints handler has 7 days to acknowledge complaint
  • Recorded in complaints log
  • Must be resolved within 28 days of acknowledgement
  • If complaint is not resolved then referred to independent redress scheme (CEDAR)
55
Q

Why must you make PI insurer aware of complaints?

A

So that they can advise if it impacts upon your policy premium and update if necessary

56
Q

What is an independent redress scheme?

A

Adjudication for disputes between customers and companies.

57
Q

Would a client have to pay for redress?

A

No, redress is free to consumers in the UK

58
Q

What is a conflict of interest?

A

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

59
Q

Types of conflict of interest?

A

Party conflict: where duty is owed to two parties in relation to a professional assignment

Confidential information conflict: where you have a duty to keep material confidential for one party, and a duty to provide that same information to another party

59
Q

Types of conflict of interest?

A

Party conflict: where duty is owed to two parties in relation to a professional assignment

Confidential information conflict: where you have a duty to keep material confidential for one party, and a duty to provide that same information to another party

Own interest: a personal conflict (such as moral, or family member)

60
Q

What should you do if a conflict of interest arises?

A

1) Disclose in writing to the client the nature of the conflict.
2) Step down or obtain consent to continue.
3) If continuing enforce information barrier

61
Q

What is an information barrier?

A

Physical or electronic separation of individuals that presents data from passing between them.

E.g., working in different areas of the office, password protected files

62
Q

What would you do if your boss asked you to do something unethical?

What if they insisted?

What if boss above them insisted?

A

I would explain that I didn’t feel comfortable doing so because it didn’t align with the rules of conduct

Speak to a more senior member of staff

Tell them you still do not feel comfortable, seek guidance from RICS

63
Q

When did RICS professional statement on conflicts of interest come into effect?

A

1 Jan 2018

64
Q

What is informed consent?

A

When a party who may be adversely affected by a COI acknowledges the existence of the risk but agrees to instruct you to proceed.

65
Q

Why does RICS have a set of rules?

A

To ensure the consistency of service and high standards of professionalism across the world from members of the RICS and firms.

66
Q

What is a breach of conduct?

A
  • Bringing the profession into disrepute
  • Breaking or failing to observe the law, agreement or code of conduct
67
Q

What is the RICS disciplinary procedure?

A

1) Complaint is received by head of regulation
2) Head of regulation makes enquiries as deemed appropriate
3) Fixed penalty may be issued, or member/firm informed they are liable for disciplinary proceedings (consent order or disciplinary panel)

68
Q

What is a fixed penalty?

A

Monetary fine that varies in amount based on whether it is applied to member or firm, or the time period outstanding.

In instances of failure to provide info to RICS or failure of a firm to pay annual registration fees

Can be appealed in 28 days but admin fee of £100

69
Q

What is a consent order?

A

Restraining of a member or firm from taking certain actions for a specified period of time.

Applies for minor breaches of conduct, £2000 fine per breach

70
Q

What is money laundering?

A

The process whereby money obtained through criminal conduct is made to appear to have derived from a legitimate source.

71
Q

How do you report suspicious money laundering behaviour?

A

You are legally obliged to report a SAR (suspicious activity report) to the national crime agency. (Money Laundering Regulations)

72
Q

What are the signs of money laundering?

A
  • Client being evasive about who they are
  • Client being from a high risk country
  • Client giving strange instructions
  • Client wishing to pay large amounts in cash
73
Q

What are firms obligations under Money Laundering act 2017?

A
  • Conduct a money laundering and terrorist financing risk assessment
    -Implement systems, policies, controls and procedures to address money laundering and terrorist financing
  • Apply your policies, procedures and controls across your firm’s group structure
  • Adopt appropriate internal controls
  • Provide training to staff
  • Comply with new due diligence requirements
  • Comply with requirements relating to politically exposed persons
  • Record keeping and data protections are compliant
74
Q

What is PII?

A

Professional Indemnity Insurance - insurance to protect those giving professional advice from bearing the full cost of defending a claim of negligence.

75
Q

Any one claim vs aggregate PII?

A

Any one claim policies cover the full limit for each individual claim made in the period of insurance

Aggregate policies cover the full limit for all claims made in the period of insurance.

76
Q

What if fully retroactive PI?

A

The retroactive cover means that work you completed before you took out your insurance policy can be covered by your professional indemnity insurance. Usually a date is stipulated, if it is not then all work is covered.

77
Q

What is a ‘claims made’ basis?

A

When an insurer will only offer PII cover for work undertaken during the policy period. Opposite of retroactive.

78
Q

What levels of PII are required?

A

Based on turnover of preceding year;

<£100,000: £250,000 cover
£100,001-£200,000: £500,000 cover
>£200,001: £1,000,000 cover

If no preceding year turnover, it is based on forecasted turnover

79
Q

What is excess and what levels are required?

A

Insurance excess is a pre-agreed amount of money that you need to pay to your insurance provider in the event of a claim

Turnover <£10m: the greater of 2.5% of the sum insured or £10k.

Turnover >£10m: no limit set

80
Q

What is run off cover? How long should you have run off cover?

A

A form of PII that covers historic liabilities of a business after it ceases to trade

RICS recommend 6 years minimum

81
Q

A friend asks for advice, outside of business hours, what do you do?

A

Decline to provide them advice as private advice would not be covered by my firms PII
Consider that it could be a conflict of interest, giving advice to a friend
Suggest they contact your firm to discuss formal appointment

82
Q

Why would a firm handle client’s money?

A

Holding fees in advance
Holding future payments to contractors - uncommon

83
Q

What advice does RICS give for handling client money?

A

All RICS regulated firms must protect the security of client’s money with robust control and systems in place.

All regulated firms who hold clients money must pay a regulatory fee on an annual basis to cover operational costs of the Regulatory Review Visit audit by RICS accountants

84
Q

What should you do before setting up a client’s account?

A

Client must agree to account handling in writing with signatories from both parties

There must be an agreed drawdown schedule

85
Q

What practices should be followed during the use of a client account?

A
  • Designated bank account with ‘client’ and the name of the firm
  • Only client’s money should be deposited
  • Client’s money must be deposited within 3 days
  • Money should be available on demand
  • Interest paid to client unless otherwise agreed
  • Reconciliations should take place regularly
  • Money distributed in accordance with drawdown schedule
  • Procedures need to be in place for death or insolvency of a sole practitioner
86
Q

What practices should be followed after the use of a client account?

A
  • Records kept for 6 years from last entry on statement
  • If client goes missing, all efforts must be made to return money. If no luck after 6 years it should be donated to a registered charity
87
Q

Why does the RICS have rules for CPD?

A

Because the industry is ever changing in terms of technology, regulations etc so it is important that RICS members remain competent and up to date with the industry.

88
Q

Who manages complaints at RICS?

A

Head of Regulation

89
Q

Why should a chartered surveyor remain solvent?

A

-Could be vulnerable to bribery

  • Doesn’t promote trust in the profession.
90
Q

How can you undertake conflict checks?

A
  • A part of the PQQ process we require contractors to state any COI
  • Same process with clients at appointment
91
Q

How would you carry out a money laundering check?

A
  • Customer Due Diligence
  • Simplified Due Diligence
  • Enhanced Due Diligence (done by compliance team for detailed investigation required out of my scope of confidence)
92
Q

Max amount of cash that can be taken?

A

Most firms do not accept cash as there is no audtiable trail.

Regulations stipulate 10,000 euros

93
Q

3 requirements for RICS PII?

A
  • Should be any one claim
  • Should ensure that as a minimum policy wording is written on a full civil liability basis
  • Must comply with minimum cover
94
Q

Under deed vs under hand

A

Under deed has a limitation of bringing claims under appointment of 12 years from the date of a breach. Under hand is 6.

95
Q

When was the RICS created?

A

In 1868 when John Clutton was elected first president. Royal charter was granted in 1881.

96
Q

What case law supports the use of run-off cover?

A

Merrit v Babb (2001)
Surveyor deemed liable for negligent valuation following the insolvency of his employer. No runoff cover so had to meet claim from his own resources.

97
Q

What are the benefits of having a complaints handling log?

A
  • Better management of complaints
  • Can identify areas for improvement

APC QS 2022/23 (11 decks)

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