Ethics, rules of conduct and professionalism Flashcards
Level 3 - Rules of conduct
Give me an example of when you have acted with integrity and/or Ethically?
During my project in London where I managed the tender process, three out of five tendering contractors pre-occupied the estate carrying out various works.
The winning tender bid was submitted by a non-resident contractor.
Due to the estate hosting constraints the PM asked me to disclose the winning bid and negotiate the price with a contractor already situated on-site.
I advised the PM that I was unwilling to do so as it is unethical and goes against the fair competitive tender process conducted.
Level 2 - Registration of Firms
Explain the key steps you would take if you decided to set up a regulated firm after qualifying.
- Register with RICS
- Obtain appropriate Insurance ( PII, Employers & Public Liability)
- Forward think of potential clients I can engage
- Set-up complaints handling procedure
- Open business bank account
- Put in place relevant policies (H&S, equal oppurtunities)
- Advertise properly & use correct designations
Level 1 - Insurance
If you were to set up your own regulated firm, tell me about the types of insurance, you would need.
- Professional Indemnity
- Run-off cover
- Employers liability
- Public liability
Level 1 - Insurance
What is Run off cover?
- Insurance that ensures members, firms and their clients are not exposed to financial detriment following a firms ceasing to trade.
- £1million in all limit for 6 year period
Level 3 - Rules of conduct
On your project in London, how did you respond to the request to share sensitive information?
- I refused
- Informed my director
- Went against the purpose of fair competitive tender
- Unethical
Level 3 - Rules of conduct
Which Rule/s of Conduct did you demonstrate on your refurbishment project in London?
I demonstrated various example behaviors, for example;
- I was honest and didn’t allow myself to be misled by such requests
- I questioned the PM’s decision to disclose the tender bid to another tendering contractor
Level 3 - Ethics
Did you continue to include the relevant contractor in the process?
- Yes
- The contractor that initially presented the most competitive price was awarded the contract
- The estate made the necessary adjustments to host them.
Level 3 - Ethics
In your experience do you reckon you provided a high standard of service?
- Yes
- I ensured that the clients’ interests were properly cared for
- if it came out in the public domain, it wouldn’t promote either party positively
- Looked out for the publics best interest
Level 2 - Bribery
As a RICS member how would you ensure that you comply with bribery legislation/company policy?
- Not facilitate or be complicit to bribery
- Adequate knowledge through training
- Report any activity that breaches laws
- Declare gifts, hospitality, entertainment and expenses to my employer
- Familiarise myself with company policy
- Do not accept cash or cas equivalent
- Gifts given or in receipt made it right intention
- In company name, not personal
- Proportionate to sector
- Given openly
Level 1 - Money laundering
How would you ensure you comply with money laundering regulations as a RICS member?
- Familarise myself with policy
- Log reports of any suspicions
- Verify my client by undertaking basic identity checks
- Training
Level 2 - CHP
Tell me about how your company handles a client complaints?
- Allocate the complaint to an appointed person (Project Director)
- Understand the complaint
- acknowledge the complaint 7 days from receipt
- conduct Internal investigation
- Notify PI insurers if necessary
- respond within 28 days informing client of outcome
- Formally record on CH log
- If the complaintant is dissatisfied an attempt to resolve through negotiation
- If still the complaint cannot be resolved, it will be referred to an independent redress scheme.
Level 3 - conflict of interest
Give me an example of a conflict of interest?
- If I was the projcet QS conducting a tender and one of the tendering contractors was a family member
Level 2 - Conflict of Interest
Can you continue with instruction if there is a conflict of interest, how could you handle this?
It depends, I would;
* Identify the conflict of interest
* Disclose the potential conflict to all relevant parties
* Look to see if it could be managed
* Advise the client to seek advice on the conflict
* Sought written informed consent.
* Put procedures in place to manage the conflict
Level 2 - Conflict of Interest
What controls are available to manage conflicts?
- Information barriers (Chinese walls)
- Record logs
- Recusal
- Disclosure
- Seperation
- Training
Level 1 - Rules of conduct
What did the new RICS Rules of Conduct replace?
When do they take effect?
The new rules of conduct replace the;
* the former RICS rules of conduct for firms and members
* the five global professional and ethical standards
The change came into effect on the 2nd Feb 2022
Level 1 - Rules of conduct
What are the main changes to the Rules Of Conduct?
- The change provides a simpler structure
- helps the profession respond to new risks and opportunities.
- Clear examples
- Focus on respect and D&I
- Understanding technologies
- Tackling global challenges.
Level 1 - Bribery
What constitutes a bribe?
An offering, giving, acceptance or demanding to gain an illegal or unethical advantage.
Level 1 - Bribery
What is a bribe?
- An inducement or promise for an action that is illegal, unethical or a breach of trust to gain an advantage.
Level 1 - Bribery
What are the penalties for accepting a bribe?
- Maximum 10 years Imprisonment
- and/or Unlimited fine
Level 1 - PII
What is Professional Indemnity Insurance (PII)?
Protects Members and firms from suffering financial loss they cannot meet
Level 1 - Money Laundering
What are the penalties for being involved in money laundering?
- Maximum 14 years Imprisonment
- and/or Unlimited fine
Level 1 - PII
What is a PII aggregation clause?
- An aggregation clause governs what happens if there is more than one claim under the same policy in the same year.
- It enables two or more separate losses covered by the policy to be treated as a single loss
Level 1 - PII
What does ‘claims made’ mean in terms of PII?
- ‘Claims Made’ is a term used to describe an insurance policy which only provides cover for claims which are notified during the term of the policy.
Level 1 - PII
What are the minimum limit of indemnity based on, and what are the limits?
- turnover in the preceding year.
£100K or less - £250K
£100,001 to 200K - £500K
£200,001 and above - £1,000,000
Level - PII
What are the maximum uninsured excess?
£10million or < - >2.5% of the sum insured or £10K
>£10million - No limit set
Level 1 - PII
What is run off cover?
- To ensure that firms, members and their clients are not exposed to financial detriment in the period following a firm ceasing to trade
Level 1 - PII
What is the minimum policy requirement for run off cover?
£1million limit for period of 6 years
Level 1 - Ethics
What is the ethical decision flow chart and how do you use it?
- Decision-making framework that
- Helps make ethical decisions that are in line with RICS ethical standards.
Level 2 - PII
Would you carry out pro-bono work as a qualified suveyor?
- I would ask my employer if I was covered under their PII policy to do so
- Ask the client for a nominal fee
Level 1 - PII
What is the risk of doing pro-bono works?
- Risk of claims made and suffering financial loss
Level 1 - Legislation
What acts are you aware of relating to Bribery and Money laundering?
- Bribery Act 2010
- Sanctions & Anti-Money Laundering Act 2018
Level 1 - CPD
What are the CPD requirements for members?
- 20 hours for chartered members
Level 1 - Conflicts of Interest
What is a conflict of interest?
- Someone in a position of trust has a competing personal or professional interest
- Making it difficult for them to act impartially
Level 1 - Conflicts of Interest
What are the different types of conflicts of interest?
- Party
- Own interest
- Confidential information
Level 1 - Conflict of Interest
What are the exemptions to maintaining confidentiality of confidential information?
- Required by Law
- Proof the relevant party consented to disclosure before it was made.
Level 1 - Conflict of Interest
When assessing a conflict of interest what factors need to be understood?
- Their is a conflict or significant risk of one
- The facts
- What the conflict is
- How it may affect my impartiality
Level 2 - Conflict of Interest
How would you identify conflict of interest?
- Depends on size & complexity of company structure
- Database checks
- Existing record searches
- Advisory emails to staff
Level 1 - Ethics
How often does a chartered surveyor have to take their ethics test?
- Every three years
Level 1 - Money Laundering
Give me an example of the different types of systems firms can have in place to comply with Money Laundering laws?
- Identity checks/due diligence
- Written policy’s
- Training
- Appointed persons
- Recorded reports
Level 1 - Bribery
Give me an example of the different types of systems firms can have in place to comply with Bribery laws?
- Registers
- Written policy’s
- Training/guidance
- Appointed persons
- Risk assessments
Level 3 - Money Laundering
Your client comes to your office with your fees in cash, will you accept it?
- I’d consider it
- Depends on amount
Level 1 - Money Laundering
What are the cash limits you can lawfully take?
- Anything under £10K
Level 2 - Fees
What was included within your fee quotations?
- Project name
- Basis of my scope/ service
- Basis of calculation
- Assumptions/ Exclusions
- Proportionate value over the RIBA stages
- Fee drawdown schedule
Level 1 - CPD
How can CPD hours be split annually?
- 10hrs Formal
- 10hrs Informal
- Informal hours should never exceed formal hours
Level 2 - Client money
Your client wants to give you your fee upfront, what steps should you take pre/post receipt?
- Open and deposit funds into client account titled ‘Client’
- Provide information to the client such as; Bank details, copy of company procedure
- Fees due, provide a fee invoice and schedule of drawdowns prior to withdrawl
- Keep records of receipts and payments
- Conduct regular reconciliations
