Ethics, Rules of Conduct and Professionalism Flashcards
What do the new Rules of Conduct replace?
Rules of Conduct for Members
Rules of Conduct for Firms
Global Professional and Ethical Standards
Why do we have Rules of Conduct?
These Rules set out the standards of professional conduct and practice expected of members and firms registered for regulation by RICS.
What is the definition of Ethics?
Being ethical means conforming to accepted moral standards.
An ethical person has a higher standard than just avoiding a certain behaviour or practice because it is illegal.
What is the Royal Charter and when was it granted?
The Royal Charter 1881 A ‘Grant’ issued by the Monarch, to maintain and promote the usefulness of the profession for the public advantage in the United Kingdom and worldwide.
What might happen if a Member contravenes the Rules?
Caution
Conditions
Fine
Expulsion
Removal of Registration
How many Bye Laws and Regulations are there?
10 Bye Laws - ratified by UK Privy Council
10 Regulations - Approved by RICS Governing Council
How is the institution structured?
- Privy council at the top which grants and awards the royal charter.
- Beneath his you have the Governing Council
- Beneath that you have the Standards and regulation board and regulatory tribunal and the RICS board.
- Under the RICS board you have the Audit, Risk Assurance and Finance Committee, the Nomination and Renumeration Committee and the World Regional Boards and Market Advisory Panels
Which of the 10 Bye Laws and Regulations do the Rules of Conduct sit under?
Rule 5 of the Bye Laws and Rule 5 of the Regulations.
What are the Rules of Conduct?
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 be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
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.
Provide 3 example behaviours of Rule 1 of the RICS Rules of Conduct
1.6 Members and firms are open and transparent with clients about their fees and services.
1.7 Members and firms act to prevent others being misled about their professional opinion.
1.8 Members and firms do not take unfair advantage of others.
Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement.
Firms have effective processes to identify actual and potential conflicts of interest, to enable appropriate decisions to be made on whether to accept work, and to keep records of decisions made about actual and potential conflicts of interest.
Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own selfinterest.
Provide 3 example behaviours of Rule 2 of the RICS Rules of Conduct
- Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.
- Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently.
- Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently.
Provide 3 example behaviours of Rule 3 of the RICS Rules of Conduct
3.1 Members and firms understand clients’ needs and objectives before accepting any professional work.
3.7 Members and firms communicate with clients and others clearly and in a way they can understand.
3.11 Members and firms understand the risks and benefits of using relevant technology.
Provide 3 example behaviours of Rule 4 of the RICS Rules of Conduct
- Members and firms respect the rights of others and treat others with courtesy.
- Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation.
- Members and firms do not bully, victimise or harass anyone.
Provide 3 example behaviours of Rule 5 of the RICS Rules of Conduct
5.3 Members and firms ensure that public statements made by the firm, or in which members are (or could be) identified as members of the profession, do not undermine public confidence in the profession.
5.4 Members and firms respond to complaints made against them promptly, openly and professionally.
5.5 Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body.
What are the core professional obligations for members and firms?
Members:
- Members must comply with the CPD requirements set by RICS.
- 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.
Firms:
- 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.
What things do you need to consider as a sole practitioner?
Professional obligations of firms point 3 - 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.
Can do this in the form of a locum agreement.
Why were the Rules of Conduct replaced?
The Rules of Conduct were replaced following a consultation with RICS members to provide a single document with greater clarity. There is now greater clarity on example behaviours.
When did the Rules of Conduct come into place?
02/02/2022
What is the RICS moto?
Est modus in rebus / there is measure in all things.
When was the RICS founded?
1868
When was the Royal Charter granted?
1881 by the Privy Council
Tell me about RICS’ CPD policy
- All members must undertake a minimum of 20 hours CPD each calendar year (January to December).
- Of the 20 hours at least 10 hours must be formal CPD. The remainder can be informal CPD.
- All members must maintain a relevant and current understanding of our professional and ethical standards during a rolling three-year period. Any learning undertaken in order to meet this requirement may count as formal CPD.
- Members must record their CPD activity online by 31 January.
What would you need to do if you were setting up a new firm tomorrow?
- Follow the RICS Rules for Registration of Firms.
- Inform the RICS and register for Regulation.
- Prepare a complaints handling procedure.
- Obtain adequate and appropriate professional indemnity cover.
- Abide by the Rules of Conduct.
- Follow the Rules for the use of the RICS logo and designation by firms.
What insurances does a RICS firm need to consider?
- Professional indemnity insurance
- Employers liability
- Public liability
- Buildings insurance for their premises.