Ethics, rules of conduct and professionalism.

Question 1

Why do you want become a member of RICS?

Answer 1

I want to become a member of the RICS as this is considered the gold standard of surveying services.

Question 2

What is the role of the RICS?

Answer 2

The RICS Promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure.

Question 3

What are the key functions of the RICS?

Answer 3

A Royal Charter is an instrument of incorporation, granted by The King

Question 4

Who is the current RICS President?

Answer 4

Anne Gray

Question 5

What do you understand by the term self regulation?

Answer 5

Self-regulation is the ability to understand and manage your own behaviour and reactions.

Question 6

Can you tell me what you understand by the principles of better regulation?

Answer 6

The RICS Rules of Conduct for Firms apply to all Firms worldwide. They cover those matters for
which Firms are responsible and accountable. The Rules focus on our regulatory goals
and adopt the five principles of better regulation:

• Proportionality.
• Accountability.
• Consistency.
• Targeting.
• Transparency

Question 7

What is A Bye Law?

Answer 7

In the case of the RICS it is a rule made by a company or society to control the actions of its members.

Question 8

Can you give an example of one of the RICS Bye Laws?

Answer 8

A Firm shall operate a complaints-handling procedure and maintain a complaints log.

Question 9

Explain to me the new RICS Rules of Conduct - What do they replace?

Answer 9

The Rules of Conduct support positive change in the built and natural environments, through
promoting and enforcing the highest ethical standards in valuation, the development and
management of land, real estate, construction and infrastructure. The Rules of Conduct are based on
ethical principles of honesty, integrity, competence, service, respect and responsibility.

The new rules replace the rules of conduct for members, rules of conduct for firms and the global professional and ethical standards.

Question 10

When did the RICS Rules of conduct come into effect?

Answer 10

2nd February 2022.

Question 11

Who do they relate to?

Answer 11

All members and firms regulated by the RICS.

Question 12

What are the 6 ethical principles that the rules of conduct are based on?

Answer 12

Honesty, integrity, competence, service, respect and responsibility.

Question 13

What are the 5 Rules?

Answer 13

1) Members and firms must be honest, act with integrity and comply with their professional 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 maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

4) Members and Firms must treat others with respect and encourage diversity and inclusion.

5) Members must Act in the public interest, have responsibility for their actions and act to prevent harm and promote and maintain public confidence in the profession.

Question 14

Give an example for each behaviour of RICS Rules of Conduct?

Answer 14

Rule 1 - 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 self interest.

Rule 2 - Members and firms only undertake work that they have the knowledge, skills and resources to
carry out competently

Rule 3 - Members and firms agree with clients the scope of the service to be provided and its
limitations, and timescales for the work.

Rule 4 - Members and firms do not bully, victimise or harass anyone.

Rule 5 - Members and firms respond to complaints made against them promptly, openly and
professionally.

Question 15

What disciplinary procedures can the RICS impose?

Answer 15

Under the Regulatory Tribunal Rules processes for disciplinary action and decisions are made as well as regulatory actions. The disciplinary action depends on the severity of the case.

For less serious cases a regulatory compliance order or aka consent order to ensure future compliance with the standards. This may include a fine or caution. N.B if a regulated member does not admit the allegations and the case not warranting a hearing the case may be referred to a single member of the regulatory tribunal to determine the disciplinary outcome - which may include expulsion.

For more serious cases the Head of Regulation may impose a regulatory tribunal - where a hearing will take place and a panel may impose sanctions ranging from fires to expulsion and determine costs against regulated members.

Question 16

When did the RICS last update their disciplinary rules?

Answer 16

2nd March 2022

Question 17

What do you understand by the term professional practice?

Answer 17

An individual or individual working in a professional capacity who is reliable set high standards and is held accountable for the thoughts words and actions.

Question 18

What money laundering regulations or legislation are you aware of?

Answer 18

The Money Laundering and terrorist financing (Amendment) Regulations 2022.

The Proceeds of Crime Act 2022.

Question 19

What is a red flag of money laundering?

Answer 19

1. Requesting unusual payment methods such as cash or crypto currencies without a legitimate reason
2. Exhibiting a lack of concern for the purchase price or terms of the transaction.
3. Purchasing multiple properties in succession without clear legitimate business reasons.

Question 20

What bribery legislation are you aware?

Answer 20

Bribery Act 2010 effective July 2011

Question 21

What is a Bribe?

Answer 21

A bribe is money or a favour given or promised in order to influence the judgment or conduct of a person in a position of trust.

Question 22

What are the penalties for accepting a bribe?

Answer 22

Under section 11 of the bribery act penalties for an offence committed by a person other than an individual is punishable by fine. In either case, the fine may be up to the statutory limit of £5,000 in England and Wales and £10,000 in Scotland if the conviction is under common law. If the conviction has been given under an indictment then the fine can be unlimited.

Question 23

What are the penalties for being involved in money laundering?

Answer 23

In a Magistrates court a maximum sentence for money laundering is a years imprisonment and unlimited fine and within the crown court a maximum of 14 years imprisonment accompanied by a fine.

Question 24

What constitutes a fine under the Bribery Act?

Answer 24

The Bribery Act 2010, which came into force on 1 July 2011, makes it an offence for a UK national or person located in the UK to pay or receive a bribe, either directly or indirectly. The Bribery Act covers transactions that take place in the UK or abroad, and both in the public or private sectors.

Question 25

What constitutes an offence under the current money laundering regulations?

Answer 25

Money laundering offences are found in Part 7 of Proceeds of Crime Act 2002 (‘POCA’). Money laundering describes offences concerning the possession, concealment, conversion, transfer or making of arrangements relating to the proceeds of crime.

Question 26

How long should you keep anti money laundering records for?

Answer 26

Five years beginning from: the date a business relationship ends. the date a transaction is completed.

Question 27

What is a Professional indemnity insurance (PII)?

Answer 27

Professional indemnity insurance is a commercial policy designed to protect you and your business against claims for financial loss or damage that are made by a client or other third party individuals. These claims could come as a result of perceived negligent services or negligent advice your business has provided.

Question 28

Can you tell me the requirements for PII from the RICS?

Answer 28

Requirements:

The nature and extent of the insurance must be adequate and appropriate having particular
regard to:

An ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement
basis

RICS’ minimum policy wording or more comprehensive wording. As a minimum, you should
ensure that your policy wording is written on a full civil liability basis and

The minimum level of indemnity based on the firm’s turnover in the previous year (or
estimated for a new firm).

Question 29

What is a PII aggregation clause?

Answer 29

A clause that allows or requires a number of, usually, similar or linked claims to be treated as a single claim.

Question 30

What does ‘claims made’ mean in terms of PII?

Answer 30

The policy in place at the time the claim is made by the client will provide cover

Question 31

Is a PII excess usually paid per claim?

Answer 31

Usually, Yes.

Question 32

In a negligence claim what would help to show that you acted with consideration and due process?

Answer 32

A good trail and record of the work which was undertaken and the correspondence between yourself and the client.

Question 33

Can good record keeping help to provide a defence in PII claim?

Answer 33

Yes.

Question 34

If you were providing services outside of your usual scope to a client what might you need to do in relation to your PII cover?

Answer 34

I would contact my insurer to firstly check we are able to undertake the work.

Question 35

What is run off cover?

Answer 35

RICS requires that firms have ‘adequate and appropriate’ run-off cover, meaning a minimum of six years for consumer claims (insurers will provide £1,000,000 aggregate limit automatically in the minimum policy wording) and cover for commercial claims - we would normally expect cover for six years after closure.

Question 36

What are the RICS requirements are there relating to run off cover?

Answer 36

They expect insurance cover for six years after closure.

Question 37

What changes have been recently changed by RICS to minimum approved PI cover?

Answer 37

As of 1 April 2021 RICS new Minimum Policy Wording and insurance rules for professional indemnity insurance (PII) are in effect, which will allow more chartered surveying firms to obtain improved fire safety cover in their PII.

Question 38

Would a dictated report avoid the need to have any written site notes?

Answer 38

In essence yes, but best practice would to write out dictation as another means of evidence.

Question 39

What is the ARP?

Answer 39

The assigned risks pool.

Question 40

Who can access the ARP?

Answer 40

UK RICS regulated firm who are unable to obtain PII insurance.