Ethics, Rules of Conduct and Professionalism Flashcards
What are the updated 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 were the rules updated?
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.
I also understand there is now a greater focus on clearer example behaviours, understanding evolving technology and tackling climate change.
How have the rules changed?
The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate documents:
Rules of Conduct for Members.
Rules of Conduct for Firms.
Global Professional and Ethical Standards.
Appendix A of the Rules of Conduct now contains the professional obligations of Members and Firms.
What are the benefits to a RICS guidance note?
This is a guidance note. It provides advice to RICS members on aspects of their work. Where procedures are recommended for specific professional tasks, these are intended to represent ‘best practice’, i.e. procedures which in the opinion of RICS meet a high standard of professional competence
What are AECOM’s Procedures and Policies?
AECOM Policies, procedures and forms can be found on the company’s intranet page.
Examples include:
Ethical behaviour is the basis for everything we do.
AECOM is committed to treating its employees fairly and providing each of us with opportunities for advancement and growth.
Teamwork, mutual respect and trust, and open communication are the foundation of AECOM’s culture.
AECOM strives to be a responsible corporate citizen in the communities in which we operate.
Meeting clients’ needs is of utmost importance.
We are committed to compliance with the laws, rules and regulations applicable everywhere we conduct business.
What are member obligations to the RICS?
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 firms’ obligations to the RICS?
- 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?
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.
48 hours required when sitting your APC
A minimum of 20 hours CPD must be achieved per calendar year, of which a minimum 10 hours must be formal.
Members must undertake learning on the standards expected around RICS Ethics on a rolling 3-year period.
All CPD’s must be recorded via the RICS on-line management system.
Why is it important to follow a 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.
As well as being an important tool for the Institution, the Rules of Conduct are also a useful professional guide for individual institution members.
What is due diligence?
Reasonable care and caution exercised by a person who is buying, selling, giving professional advice, etc., especially as required by law to protect against incurring liability
The process of gathering or disclosing relevant and reliable information about a prospective sale, purchase, contract
What is a conflict of interest?
A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary, decline work opportunities where a conflict of interest occurs.
If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?
I would check the clients understanding of the conflict of interest.
I would then make the client aware of the potential for reduced impartiality.
If they were still insistent on the appointment, I would seek a letter of instruction from the client to continue.
Following the appointment I would agree on working procedures to manage the conflict of interest with the client and the teams involved.
How could the conflict of interest be managed internally if two separate departments were working for the same client?
I could put in place procedures to ensure the exclusivity of staff.
This would avoid any cross-over of information between the departments.
I would also ensure that there are separate communication lines into the client.
Separate geographical locations and secure office and data storage would also need to be provided.
Staff could also sign up to confidentiality or non-disclosure agreements.
I would also need to monitor the potential conflict and keep the client updated on progress.
Why is it important to agree to Terms & Conditions
Together with the Engagement Letter, the T&C’s will form the contract between our Firm and the Client.
Our terms of business are made up of around 14 Sections including:
Our firms General Obligations to the client which is to provide ‘Services’ detailed in the Engagement Letter with the skill, care and diligence expected of a professional person.
The Client’s General Obligations for example they are not to solicit any Partner or Employee with a job offer, if this occurs they must pay £35,000.00 compensation.
Additional Service terms for example this sets out the entitlement for additional fees if the work scope varies.
My firms’ liability for example any claims raised are to be against the company and not any Partner or Employee.
Payment terms and interest entitlement in the event of late payment.
Termination and Suspension terms which have a minimum 7 days notice to suspend the works.
Force Majeure terms for example the company is not liable for failure to carry out its service obligations if this occurs.
Intellectual Property Rights relating to copyright of documents provided by the firm.
Assignment and Subcontracting terms set out the requirements for written consent from other either party.
Formal communication is to be in writing to the addresses set out within the Engagement Letter.
Problems and Complaints handling procedures are included within the terms of business.
Why is it important to take care when handling client data?
If signed up to an NDA with a client I ensure complete confidentiality and am not able to talk about these projects with colleagues who are not party to the project.
I use lockable and secure document storage for hard copy documents. The electronic information is kept securely on encrypted servers.
I am always sure to lock my computer when away from my desk and comply with my firms IT security policies for example attendance at Cyber security courses and regularly updating my passwords.
If I am sharing or processing information not available in the public domain from a previous project I always obtain the clients written permission to do so.
