Ethics, rules of Conduct and Professionalism Flashcards
What is the role of the RICS?
- Regulate and promote the profession.
- Maintain the highest educational and professional standards.
- Protect Clients and consumers through a strict code of ethics and professional standards.
- Promote impartial advice, analysis and guidance.
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 the public majority voted in favour of replacing the existing rules. The new rules of conduct is now a single document, providing better clarity and with a greater focus on clearer example behaviours, understanding and evolving technology and tackling climate change.
What are the professional obligations of members? How many are there?
- Members must comply with CPD requirements of 20 hours per year (10 of which formal).
- Must cooperate with RICs
- Must promptly provide all information reasonably requested by the standards and regulations 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.
What are the CPD requirements for MRICS members?
- Record 20 hours of CPD per year (in which 10 must be formal)
- Record CPD relating to RICS professional and ethical standards during a rolling 3 year period.
- All CPD’s must be recorded via the RICS on-line management system.
Please give some examples of matters you may refer to the RICS decision tree in order to seek guidance?
- Receiving gifts in a professional capacity
- Equal opportunities
- Whistleblowing
- Copyright and ownership
- Conflicts of interest
- Charitable donations
- Attendance at hospitality events
What is the meaning of the RICS motto?
‘Est Modus in Rebus’ – 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 services
- Promote and enforce standards
- Lead solutions to the major challenges facing the built environment through professional expertise.
How is the RICS structured?
- Founded in 1868 with the Royal Charter being granted by the Privy council in 1981
- 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
- Governing Council (33 members) runs the RICS
- The regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.
AKA - Regulatory Board, Management Board and various committees report to the Governing Council
- There are 18 groups covering the broad spectrum of surveying services. e.g. Quantity Surveying and Construction, Valuation and buliding surveying.
Name a rule from the Rules of Conduct and how you apply it?
- Act with Integrity – fair decision making, decline gifts.
- Always provide a high standard of service – act in scope of competence, communicate, good time keeping.
- Act in a way that promotes Trust – Openness about referral fees and commission, handling data carefully and considering economic, social and environmental benefits when providing advice.
- Treat others with Respect – courteous, polite, don’t discriminate.
- Take Responsibility – skill, care, diligence, respond professionally to complaints, question if unsure.
Prior to working with a new client, what pre-appointment checks would you undertake?
- Ensuring that I am sufficiently knowledgeable, skilled and competent to carry out the work required.
- Checking for conflicts of interest in line with the RICS professional guidance on COI
- Anti-money laundering checks, in line with the Anti-Money Laundering Directive and RICS professional statement Countering Bribery and Corruption, Money Laundering and Terrorist Financing.
- Ensuring that the firm has sufficient PII insurance to cover the value of the instruction.
- Formalise the engagement in written terms of engagement.
When setting up a new practice, what procedures would you put in place to ensure good client care was being provided?
- Processes for formalising terms of engagement and clear communication lines with the client, including confirming timescales, resourcing adjustments and obtaining any information required from the client.
- Set up procedures for obtaining regular client feedback and ensuring this is acted upon for example by holding monthly client performance reviews.
- Develop strategies for taking part in business development activities in order to retain existing clients and also generate new business.
- Procedures to keep client information confidential and using non-disclosure agreements to protect client confidentiality if required.
- Reporting to clients using agreed and consistently formatted documentation that has been tailored to meet the client’s requirements.
If a client was prepared to pay you in advance for services you were providing, how would you ensure this was dealt with?
- Set up a separate client account this is properly named and clearly identifiable.
- Provide the client with a statement of account.
- Inform and agree drawdowns.
- Prior to drawing monies send a statement of how much is to be withdrawn and what services and associated fees are made up of, send updated statements of account
- Once complete, show a final statement, ensure everything is complete and transparent.
What processes must be in place when handling client’s money?
Rics regulated firms that operate a client account must:
Set clear segregation of duties for employees
A principal oversees the client money accounting functions
Principles cannot override controls
Competent and knowledgeable staff are to process clients’ money with cover provided for long term absence.
Acounting systems and data must be secure.
Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name.
Clients must always have access to funds.
We must agree the terms and advise the client on bank details.
The account must not be overdrawn.
We must maintain client ledgers and provide a running balance.
Must ensure that the RICS regulated firm that hold client money ensure they are registered with the appropriate RICS scheme: The RICS Client Money Protection Scheme for Surveying Services. This is a scheme the provides protection, as a last resort in instances where an RICS regulated firm is unable to repay a client money up to the limits and expectations set out in the scheme rules.
What is the difference between ethics and integrity?
- Ethics are moral values that affect a person’s behaviour or actions.
- Integrity is the quality of being honest and having strong moral principles.
On receipt of a formal complaint from a client in writing what would you do?
- Arrange a call with the client asap notifying them that you have received an complaint & working to rectify the issues they are experiencing.
- Issue the client a copy of my firms complaints handling procedure for reference
- Report the complaint with all relevant details to a senior person within the firm or designated complaints handler
- Notify my firms PII insurers online with our policy requirements
- If I am unable to resolve the complaint this would need to be referred to the RICS independent redress mechanism
If you wish to set up your own practice, what initial steps would you take?
Make sure I meet the preconditions:
1. Offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services.
2. Have at least 25% of principals qualified RICS professionals (MRICS, FRICS, AssocRICS).
3. Agree to observe and comply with RICS Rules of Conduct for Firms, including working to RICS standards.
I would then register my firm using the RICS Firms Details application form and email my application.
I would have to ensure:
- Inform RICS
- Register with RICS for Regulation
- Have a Responsible Principal
- Prepare a Complaints Handling Procedure that aligns with RICS guidance.
- Prepare a Handling Client’s Money Procedure aligned with RICS requirements.
- Obtain necessary insurances (Public liability, Employer Liability, Buildings Insurance, PI Insurance (what level do I need?).
- Have a locum agreement in place if sole practitioner.
- Abide by the rules of conduct for firms and use the designation ‘Regulated by RICS’ on all practice materials.
- Set up staff training and CPD
How can professional practices look to encourage ethical environments with high standards of integrity?
- Setup confidential whistleblowing procedures
- Raise awareness and provide CPD on ethical matters
- Become an RICS accredited practice
- Establish monitoring of ethical performance amongst staff members
How many professional groups are there and can you name 5 please?
18 groups covering the broad spectrum of surveying services.
- Building Control
- Building Surveying
- Commercial Property
- Dispute Resolution
- Environment and Resources
- Facilities Management
- Geomatics
- Machinery and Business Assets
- Management Consultancy
- Minerals and Waste Management
- Planning and Development
- Personal Property/Arts and Antiques
- Project Management
- Quantity Surveying and Construction
- Residential Property
- Rural
- Valuation
Who is the RICS President?
Tina Paillet (2023)
Who is the Chair of the Quantity Surveying group?
If you became chartered, how much CPD would you have to undertake annually?
- Once a member, 20 hours with a minimum 50% of formal CPD
Can you tell me the RICS 5 Rules of Conduct that were revised in Feb 2022?
Members and firms:
1. Must act with honesty and integrity and comply with their professional obligations, including obligations to RICS
2. Always provide a high standard of service, maintain their professional skill.
3. Must provide good quality and diligent service.
4. Treat others with respect (and encourage diversity and inclusion).
5. Act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
Can you tell me the 5 professional and ethical standards which all members must comply with
- Act with integrity.
- Always provide a high standard of service.
- Members and firms must provide good-quality and diligent service.
- Treat others with respect (and encourage diversity and inclusion)
- Act in the public interest, take responsibility for their actions and act to prevent harm and mainting public confidence in the profession.
Explain your understanding of 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 the RICS.
Professional obligations are listed in the appendix of the rules of conduct and include things like firms having adequate and appropriate PI and complaints handling procedures and cooperating with RICS and providing information when requested. For sole principals to have an agreement in place that ensures their practice can continue in the event of ill health or death.
Behaviours include –
- not misleading others by their actions or omissions or being complicit in the actions or omissions of others.
- Identify conflict of interest (actual or potential) to enable appropriate decisions to be made on whether to accept work and identify throughout an assignment.
- Avoiding conflicts of interest, using money entrusted to you by clients properly and keeping it safe, and not facilitating financial crime like money laundering and bribery.
Explain your understanding of the New Rules of Conduct, Rule 2
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Maintaining your competence and understanding and staying within the limits of it are important elements of professionalism.
The behaviours for this rule include ensuring that services provided by employees and contractors, as well as you as a member or your firm, are entrusted to competent people.
Maintain competence like reflecting on professional practice, planning, undertaking and supporting continuing professional development and staying up to date with the relevant law and technical standards.
Explain your understanding of the New Rules of Conduct, Rule 3
- Members and firms must provide good-quality and diligent service.
The behaviours under this rule set out some of the basic expectations clients would have about good service including understanding of their needs, clear contracting including timescales and fees, good communication and recording of work.
Openness about referral fees and commission, handling data carefully and considering economic, social and environmental benefits when providing advice.
Surveyors will demonstrate that they have considered the long-term effects of any work being undertaken and will be encouraging clients to take a sustainable approach that balances economic, social and environmental benefits. This is therefore included in behaviour 3.10.
Explain your understanding of the New Rules of Conduct, Rule 4
Members and firms must treat others with respect and encourage diversity and inclusion.
Respect for everyone, not just clients or colleagues.
The behaviours cover not discriminating for improper reasons like race, sex or religion; checking that supply chains are free from modern slavery or unfair labour practices; and developing cultures that support and give fair opportunities to everyone regardless of differences.
Explain your understanding of the New Rules of Conduct, 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.
Taking responsibility for your actions, speaking up when you find evidence of wrong-doing, and supporting others who speak up. There are also behaviours about complaint handling and ensuring that statements on social media and other public forums do not damage public confidence in the profession.
Why does the RICS have Rules of Conduct?
- To provide a framework that we can all work to and so the client knows they are getting a set level of service
- An important tool for the institution, the rules are also a professional guide for individual members.
Rules of Conduct are core standard of behaviours for RICS members and firms, they make it clear to the public the high standards that professionals are expected to meet and are a benchmark against which complaints and concerns are measured.
What is the procedure when a breach of the Rules of Conduct have occurred?
- Not every shortcoming will necessarily give rise to proceedings.
- First step is a formal investigation by the Head of Regulations of the RICS
- 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 RICS
- An allegation by a client or a third party
- Information received or established by RICS
What actions can be imposed after the end of the investigation stage?
- Fixed penalty (a fine by the RICS)
- Consent order (written agreement between the RICS and a member/firm concerning a disciplinary issue on a breach of the RICS rules. Can require the member to take certain corrective actions, or restrain them from taken certain actions for a specified amount of time and may require to pay a fine or costs.
- Disciplinary Panel used for more serious breaches of conduct, panel usually held in public, burden of proof is on the RICS, balance of probabilities will be adopted
What is conflict of interest?
- 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.
- E.g. Own interest conflict: a personal conflict (e.g. family member as a tenderer)
What forms of conflict of interest are there?
- Party Conflict - acting on both sides of a transaction
- Own Interest Conflict - relating to a personal interest
- Confidential Information Conflict - relating to work between two parties which is confidential
Can you give me an example when you dealt with a conflict of interest?
I have not yet experienced a COI but I would follow the Motts COI process:
- Discuss - talk to my line manager for a personal conflict or the appropriate manager for an organisational conflict.
- Disclose - Use the new, confidential COI tool to disclose and create a record of it.
- Manage - Agree management actions with your line manager or the appropriate manager (and client/funding body where appropriate) and record in the COI tool.
- Monitor - Review and update the disclosure on a regular basis (at least annually).
What would you do if you had a personal conflict of interest and how would you manage this?
DECLARE - ADVISE > EITHER - INFORM or - INFORMATION BARRIER
- Members must declare any potential conflicts of interest (personal or professional) to relevant parties.
- Advise client to seek independent advice on the conflict
- Then either:
1. Informed consent (willingly given, full understanding) - can use information barrier to prevent confidential information passing between parties.
2. Don’t proceed with the works
What does RICS stand for?
- Royal Institution of Chartered Surveyors
What is the royal charter?
- Awarded in 1881 by Queen Vic, “maintain and promote usefulness of the profession for public advantage”
- RICS is a Royal Charter body.
- Royal Charter requires RICS to act in the public interest.
- Under the Royal Charter, RICS’ governing body is the Governing Council, which is responsible for approving RICS strategy and vision, overseeing the effective delivery of the strategy’ as well as standards and regulation
Where might CPD for chartered members be recorded?
- Dedicated CPD section page on the RICS’s website for chartered members to record their CPD hours.
Are you aware what chartered members have to do every three years?
- They have to renew their ethics test and carry out CPD that is related to ethics
