Ethics, Rules of Conduct and Professionalism Flashcards
Types of standards?
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.
CPD rules
Members must undertake a minimum of 20 hours of CPD activity each calendar year, Of the 20 hours at least 10 hours must be formal CPD.
The role of professional groups
Professional groups are the way that RICS segments the various technical specialisms of the profession. In total there are 18 groups covering the broad spectrum of surveying services.
Professional bodies within RICS
Lionheart
Matrix
Property elite
RICS Policy Documents
RICS guidance notes set out good practice for RICS members and for firms that are regulated by RICS. An RICS guidance note is a professional or personal standard for the purposes of RICS Rules of Conduct. Guidance notes constitute areas of professional, behavioural competence and/or good practice.
RICS bye-laws
The Bye Laws specify the situations in which reports must be made to RICS, including for certain breaches of RICS rules and regulations as well as following charge or conviction for certain criminal offences.
Why do we have professional standards?
To ensure a high standard of work is delivered.
What does PII stand for?
Professional Indemnity insurance
What is the process for handling client money?
When client money is received, RICS-regulated firms must ensure that:
It is paid into a client money account promptly
If mixed monies are received, they must be paid into a client money account and then office money transferred out promptly
Account for interest or other benefits, unless agreed in writing with the client
Unidentified funds are promptly identified. If the owner is not identified within 3 years then they must be paid to a registered charity
What is the meaning of the RICS Motto?
The motto is ‘Est Modus in Rebus’ which in Latin translates to There is measure in all things’.
What is the Mission Statement of the RICS?
To qualify and equip their members to offer the highest standards of professional service.
To promote and enforce standards
To lead solutions to the major challenges facing the built environment through professional expertise.
When was the RICS founded?
It was founded in 1868.
How is the RICS Structured?
The RICS was founded in 1868 with the Royal Charter being granted by the Privy Council in1881.
The RICS is self-regulated and internally monitored meaning that it is not regulated by the Government or external parties.
The Bye-Laws determine how the RICS is regulated.
The Governing council manage and agree the strategy for the RICS.
The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.
What are the RICS’ 5 principles of better regulation?
Proportionality.
Accountability.
Consistency.
Targeting.
Transparency.
What is the difference between RICS ethics and rules?
Ethics are a set of moral values.
Rules of conduct are a framework that we work to.
How many Global Professional and Ethical standards are there?
Up until the 1st February 2022 there were 5 Global Professional & Ethical Standards.
From the 2nd February 2022 onwards the Global Professional & Ethical Standards have been consolidated within the New Rules of Conduct 2022.
What are the Global Professional & Ethical Standards?
Act with integrity.
Always provide a high standard of service.
Act in a way that promotes trust in the profession.
Treat others with respect.
Take responsibility.
What are the New 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 maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
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.
Why did the previous Rules of Conduct change?
The previous rules had been in place since 2007.
* Following research and consultation with RICS Members, Firms and Members of the public, the majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional and Ethical Standards.
This was to provide a single document to enable greater clarity for RICS members and firms.
What are the professional obligations of members?
- Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
- 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.
What are the professional obligations of 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.
Why does the RICS have Rules of Conduct?
To provide a framework that we can all work to and so the client knows he is getting a set level of service.
In the case of a breach of a rule of conduct what is the procedure?
Not every shortcoming will necessarily give rise to proceedings.
A formal investigation by the Head of Regulation of the RICS is the first step
The RICS can request information and/or visit and inspect to investigate compliance. Members must cooperate fully with all enquiries.
How can a disciplinary proceeding be triggered?
Someone complaining to the RICS.
An allegation by a client or third party.
Information received or established by the RICS.
What three actions can be imposed after the end of the investigation stage?
.
Fixed penalty.
Consent order.
Disciplinary panel
What are fixed penalties?
A fine by the RICS.
What are consent orders?
It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules.
It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs.
When is a disciplinary panel applicable?
They are used for more serious breaches of conduct.
The panel will usually be held in public.
The burden of proof is on the RICS.
A balance of probabilities approach will be adopted.
What sort of breaches would expulsion be suitable for?
Gross, persistent or willful failure to comply with an RICS rule of conduct.
Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.
What procedures must you follow if you are starting up a new practice?
Contact the RICS for guidance and obtain a company start up pack.
Inform the RICS and register for regulation.
Appoint a contact officer for all RICS communication.
Prepare a complaints handling procedure.
Obtain Professional indemnity insurance cover.
Abide by the Rules of Conduct for Firms.
Use the designation Regulated by RICS’ on all practice material.
What insurances would you need if you were starting up your own firm?
Professional Indemnity Insurance.
Employer’s Liability.
Public Liability.
* Building’s insurance of an office premises.